I work out person tax if i be to defaulting on mortgage and other loans, but at what rate?
Answers:
If you default on your PRIMARY residence, you will not be taxed.
The ridge will still send you a 1099-C
C stands for cancellation.
But the elected representatives passed legislation last year to exempt peole from paying taxes for homes lost to foreclosure in 2007, 2008, and 2009.
Check beside your tax accountant for details.
Thanks!
At the rate of ordinary income. Rate depends on what duty bracket it puts you in. It would be classified as other income, similar to gambling winnings that didn't enjoy any taxes withheld.
You will receive a 1099-A or 1099-C. If mortgage & credit cards, maybe both. Source(s): 22 Years Washington State Real Estate Experience ~ Associate Broker since 1991
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