My cousin was given a W2 or something like this from his lender. He had to claim the difference as income. He was never approached about taken any of his assets. This was a rental property of his.
What happens if you don't have any money to pay the IRS on this debt that is forgiven that they call income?
That is a question that I was asked recently by another cousin. ( Dayumâ¦I gotta find a new familyâ¦heheh) Different situation though. He was a realtor and didnât pay taxes on some of the commissions he received from selling homes. Last couple of years he was selling homes so quick that he was able to foot the bill come tax time. Now that there is a slow down, he is in a jam. So different situationâ¦yet same issue. I am not sure what will happen hereâ¦.but I would much rather deal with a lender than your Uncle Sam. Your Uncle has a reputation for being a bully and I know several people that have had their pay garnished. Good Luck my friend.