She lost her house to foreclosure last year, which I know is not a dealbreaker from these forums, but also declared bankruptcy at the same time.

If a creditor decides to forgive a debt then it is the same as giving the debtor the money back and the IRS considers that as income to the payor which then becomes a debt according to the income tax rules as to when it should be paid.Declaring insolvency to the IRS only tells them that they will have a future problem in collecting the taxes that will be due at a future date.Remember that declaring insolvency really means that at this point in time you can not pay, it does not mean that you wont be required to pay the debt at a future point in time when your current insolvency changes.

The judge could say "illegal loan, I declare it invalid, Mr.

The other potential challenge will be since you would be buying multiple properties as part of this exchange, you would need to declare more than 3 properties.

We'll see how that works.Jon, do you end up having to declare the water bill money that the tenant pays to you as income on your taxes?

On one of those deals, the seller later declared bankruptcy.

He has signed a hardship letter declaring his income has dwindled.I did not know about the legislation, thanks for informing me.

He is willing to take on the credit risk of such a deal because he is having financial difficulty and may ultimately declare bankruptcy.

We have an A rating in with the BBB and have been facilitating lease and options on short sales for over three years now.Please do your research before declaring things illegal that are not.Please do your research on a company before agreeing to a leaseback program.DO NOT PAY UP FRONT.

Declaring some portion of s-corp profits as dividends instead of salary avoids taxes on some earned income.