Saturday, April 12, 2008

Making the foreclosed rich pay their fair share.

I didn't know this, but it seems under certain conditions that if you are foreclosed and your property taken from you and you are thrown out into the street, you may have a problem. If the bank canceled the debt, then you are considered to have received "income" per the amount of debt cancelled and thus are liable for taxes on the "income" which could very well throw you into an upper income bracket. It seems that there are some laws to mitigate this, but this just creates more legal confusion. Mainly I point this out because election season is always the time to howl about making the rich pay their fair share, but when the dust settles the rich who pay always seems to be a different group of individuals from what we commonly think of as rich.


Marf said...

Yeah, this actually caught my dad as well... Forgiven debt being income. And it didn't help any that they didn't send any tax information to my dad.

Looney said...

My condolences. It is sad to hear of this kind of stuff.

Livingsword said...

Hi Looney;

What a sad state of affairs….

In Canada the left wing party New Democratic Party calls all (and I quote) “working people” to be “not rich”. Their definition of “working people” is union people, however many union people make very good wages, for example government employees….

This article fits interestingly with mine on Creation on the Blade…on purpose….great minds…? LOL