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Can someone please help or give guidance to my situation? Received a rejection letter for housing lottery - Ineligible due to asset exceed max income. My Asset Verification is definitely below the max income (bank statement to prove) but interviewer claims that on my 1040 for 2015 tax year states differently. I was day trading in 2015 and reported the information on 8949 Sale and Other Disposition of Capital Assets form for the tax year. Interviewer thinks the Total Dollar Transaction for the year is my current assets. As some of you may know, that total is a cumulative of daily trading transactions. So it looks like I have a lot of money but in actuality it is the total opposite. I don't know how to prove and advise on appeal. I would have thought they have someone in the area of expertise to know this kind of stuff. HELP!
I am not familiar with the form you mentioned, but can you get your accountant to write a letter certifying what you've said? Notarized if possible. And get it over there ASAP.
Also, the city did lower the asset cap this year. It's something like $55,000 or possibly $72,000 (retirement funds in 401(k) and IRA accounts is not included in that).
Ok Thank you! It's just crazy how they are interpreting the info. I cant even access the statements because the account was already closed at the beginning of the year.
You need an accountant to explain what you said in your first post, unless you're clear you understand it, in which case make it the centerpiece of your appeal. But keep in mind that the asset cap is now much lower than when you applied, and perhaps even interviewed, for this property -- it's now about $55,000 excluding retirement funds, so you might be over regardless of how they interpreted what you mentioned in your post, which I trust someone understands (I don't, but never mind). And no, they do not have tax experts on hand to interpret this stuff -- they go by what they see. But if they're wrong, and you or an accountant can show how they've incorrectly interpreted your assets, you can win your appeal. You have two weeks from the date of your letter to appeal, and I suggest not rushing it -- be sure of your facts and supporting documentation before you hand over anything.
I just reread your post, and it seems as if you understand it, and I sort of do too. You should get hold of the Marketing Guidelines (there's several links on the forum to it) for a clear explanation of how the marketing agents look at assets, because it seems your assets brought your income over the limit. There's an asset cap of about $55,000, not including retirement funds. Then 0.06% of total assets (which isn't much, but this does include retirement funds) is added to your income, and if that total brings you over the highest income for your household size, you're rejected. The only way you can win an appeal is if the marketing agent made a mistake, which they frequently do, and that's why I say always appeal, but think the appeal through, and don't simply dash something off. You have to show how your assets were miscalculated. You have two weeks from the date of the rejection letter to appeal. Good luck.
Hi Moving415 - Thank you for your advise. I think the interviewer is misinterpreting my form 8969. When he called for details, he told me I have $$$$ amount of assets based on my 8969. Even on the phone, I told him it was a cumulative of $ total for all my day trading transaction in 2015. That is the way how IRS wants us to report each transaction on our taxes.
Basically if I had $100 in the trading account and made a day trade yesterday 11/28 at 12 pm for $100 of xyz stock and sold the same stock at 4 pm for $101. Then today I bought ABC Stock from my previous sale funds of $101 at 9 am and sold it at $102 at 3 pm.
The form 8969 details each transaction thus:
11/28 cost at $100 Sold at $101
11/29 cost at $101 Sold at $102
My Amount TOTAL of assets sold on form 8986 is $203.
Basically if I did the similar transactions all year round daily for 300 days then the Total of assets sold will be appx $100 X 300 transaction = $30,000! When in actually, my only contribution to the account is only $100 dollars! The interviewer is saying I have $30K of Assets based on info on form 8969. I hope you can follow my example.
I tried to get more information from his rejection letter but they never offer much in details. It's such a challenge to prove when my account is closed and I have no access to any previous statement. Even if I can get it, it will take 7 to 10 business days. By snail mail, it will be over my appeal date.
If you or anyone else can give me any additional thoughts or advise, it will be greatly appreciated. Thanks!
Try to get an extension of the appeal if needed -- these things are possible. You might want to get an accountant to explain this situation in a letter (if you don't see one regularly for your taxes, you'll have to pay for that, but it might be worth it). Or in as simple a way as possible, explain what you explained in your last post in your appeal (this is not my area, so I have no idea who's "right"--perhaps another poster can help). If your appeal is denied, you can still appeal directly to HPD. Again, this is not my area, and I have no idea how your appeal will go. Good luck. But do appeal -- it's always worth it. But take great care in how you explain it. Go step by step -- quote the IRS regulations verbatim about how this needs to be reported if you need to. Use bullet points and numbers. Write it at a third-grade level, as if explaining it to a child.
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