snowbirdgv
Junior Member
What is the name of your state (only U.S. law)? Arizona
I do not think I have to file tax return...I am disabled( since 1994), on SS with income of $1065 per month. I have not filed since 1994.
I got a letter from IRS asking me for Form 1040 for tax perios ending Dec, 2007. Letter states I paid mortgage interest of more than $10,000.
On paper,I own three properties. I tried to sell the big house for a couple of years. This house (the most expensive) was finally sold on an installment loan contract (loan stays in my name because they could not qualify for a loan)
I had to borrow money from friend, take out loans just to keep this house from forclosure. I make no money on this house, just the payments are made for the mortgage.
The second property- condo- is currently in pre-forclosure. The payments are only $320 per month, but I am sinking in debt and can't afford it anymore.I may just let it go if it doesn't sell soon. I owe more than the value.
The house I live in is one that I owe more on it than the value. It has been for sale for over a year and I can't keep borrowing money to keep them. My friend from Canada has loaned me money to keep up with everything.
A few years ago (before the market crashed) I took out a large equity loan on the house I live in - it was for $50,000. I have used that money to live on and to keep up payments. My friend co-signed with me for that loan. We agreed to let him a have a lein on my properties for that loan, so he gets any money from the sale of the properties, if and when they sell.
So, between these loans, borrowing from friends, market crash, I am in debt.
I did not think loans from bank or friends is considered income?
Even when my daughter rented one property, she did not pay enough for the payment, and I had to make up the difference...would this still be considered income if I did not make a profit?
This letter says I have 45 days to give them information or I can be charged with fines and penalties, and they may (under section 6020b) prepare a return based on their income information.
Should I call them, or answer their letter, or find a tax person to assist?
I don't want to say anything wrong ...
Thank you in advance for your input.
I do not think I have to file tax return...I am disabled( since 1994), on SS with income of $1065 per month. I have not filed since 1994.
I got a letter from IRS asking me for Form 1040 for tax perios ending Dec, 2007. Letter states I paid mortgage interest of more than $10,000.
On paper,I own three properties. I tried to sell the big house for a couple of years. This house (the most expensive) was finally sold on an installment loan contract (loan stays in my name because they could not qualify for a loan)
I had to borrow money from friend, take out loans just to keep this house from forclosure. I make no money on this house, just the payments are made for the mortgage.
The second property- condo- is currently in pre-forclosure. The payments are only $320 per month, but I am sinking in debt and can't afford it anymore.I may just let it go if it doesn't sell soon. I owe more than the value.
The house I live in is one that I owe more on it than the value. It has been for sale for over a year and I can't keep borrowing money to keep them. My friend from Canada has loaned me money to keep up with everything.
A few years ago (before the market crashed) I took out a large equity loan on the house I live in - it was for $50,000. I have used that money to live on and to keep up payments. My friend co-signed with me for that loan. We agreed to let him a have a lein on my properties for that loan, so he gets any money from the sale of the properties, if and when they sell.
So, between these loans, borrowing from friends, market crash, I am in debt.
I did not think loans from bank or friends is considered income?
Even when my daughter rented one property, she did not pay enough for the payment, and I had to make up the difference...would this still be considered income if I did not make a profit?
This letter says I have 45 days to give them information or I can be charged with fines and penalties, and they may (under section 6020b) prepare a return based on their income information.
Should I call them, or answer their letter, or find a tax person to assist?
I don't want to say anything wrong ...
Thank you in advance for your input.