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Insolvency Worksheet  Form

Insolvency Worksheet Form

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Instructions and help about insolvency worksheet form 982

hello John mcconnan here with upside down realestate.com and for shorts sales.com questions it's January 2nd 2013 questions are coming up about taxes um in this case I had a client who I thought was going to use the qualified real property business indebtedness exception but she wanted to consider insolvency and her propert is going to close on January 7th or 8th 2013 well the way to begin right now is I would get all my assets and all my liabilities together on the insolvency worksheet or my own spreadsheet at the time of closing because the way the IRS looks at insolvency they want to know they want the snapshot of your asset picture versus liabilities immediately before the cancellation of debt the cancellation of debt happens in my opinion at the closing in California because of 580e which says if the Banks agree to a short sell they are releasing you from the remaining loan balance so the cancellation of debt happens at the time of the closing and so immediately before the

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