I beg everyone’s patience with my incessant questions. My 341 was extended 6 months – waiting is maddening. My situation in VA follows:
Primary residence in N VA for 30 plus years for both of us is now only my primary residence.
Spouse moved to our second home in Southern VA in Dec 2010, to take a better paying job. She changed her driver license address to the second home address – it became her primary.
I stayed in the former joint primary address but was downsized into retirement in July 2011. Looked for work. Not working to date, little chance of finding work so far. I remain in the N VA house.
Filed jointly for 13 in Oct 2011. Proposed 25% – Trustee is seeking 100% due to incomes and is demanding surrender of my “primary”, to increase DMI, of course. 341 continued to March 2012. Almost certain that we will end up with a 100% plan, and that is OK – I want to get on with my life!
My primary residence is underwater – cannot do a strip of the second (held by a credit union) Will surrender that house in March 2012. Potential deficiency here of 125 – 150K
Spouse's primary also has a first and second (both held by the same credit union that also holds the second on my primary residence – hoping they do not pull the cross-collateralization trick on us.) My attorney moved to strip the second (25K) on spouse’s primary. 25K would be the deficiency on this property, I guess. The marriage will stay intact and will I be moving to the spouse’s primary residence after the March 2012 continued 341/surrender of my “primary” residence.
So, with that background and for income tax planning and surviving Chap 13 payment plan purposes, I’m trying to figure out if the Mortgage Forgiveness Act will apply to my primary, spouses primary, or both, and if we should plan on filing joint or separate file separate tax returns for 2011 and 2012.
Previously have filed joint returns for many years. 2011 was a banner year for income but 2012 will show a large decrease in joint income. A few CPAs I’ve spoken with were not willing to touch this question with a ten foot pole, btw. Thanks for reading this; any advice, comments would be greatly appreciated.
Primary residence in N VA for 30 plus years for both of us is now only my primary residence.
Spouse moved to our second home in Southern VA in Dec 2010, to take a better paying job. She changed her driver license address to the second home address – it became her primary.
I stayed in the former joint primary address but was downsized into retirement in July 2011. Looked for work. Not working to date, little chance of finding work so far. I remain in the N VA house.
Filed jointly for 13 in Oct 2011. Proposed 25% – Trustee is seeking 100% due to incomes and is demanding surrender of my “primary”, to increase DMI, of course. 341 continued to March 2012. Almost certain that we will end up with a 100% plan, and that is OK – I want to get on with my life!
My primary residence is underwater – cannot do a strip of the second (held by a credit union) Will surrender that house in March 2012. Potential deficiency here of 125 – 150K
Spouse's primary also has a first and second (both held by the same credit union that also holds the second on my primary residence – hoping they do not pull the cross-collateralization trick on us.) My attorney moved to strip the second (25K) on spouse’s primary. 25K would be the deficiency on this property, I guess. The marriage will stay intact and will I be moving to the spouse’s primary residence after the March 2012 continued 341/surrender of my “primary” residence.
So, with that background and for income tax planning and surviving Chap 13 payment plan purposes, I’m trying to figure out if the Mortgage Forgiveness Act will apply to my primary, spouses primary, or both, and if we should plan on filing joint or separate file separate tax returns for 2011 and 2012.
Previously have filed joint returns for many years. 2011 was a banner year for income but 2012 will show a large decrease in joint income. A few CPAs I’ve spoken with were not willing to touch this question with a ten foot pole, btw. Thanks for reading this; any advice, comments would be greatly appreciated.
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