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She will still be liable for that mortgage and SHOULD be! You think the tax payer should pay for what's happening in the economy? Foreclosure isn't an option, it's burden for you to pay or unfortunately the taxpayer which is literally STEALING. MANY people are in your shoes, blame the democrats, Barney Frank and Mike Dodd for gving out unqualified mortgages for years. They should be in prison.
Comeon get it straight. His W2 says 17,000. That is about standard for a minimum wage tip worker. Actually that is high so he works a lot of hours or it is both of them. The IRS however knows that he is a tip worker and would audit him in an instant if he claimed only the $17,000. What he does declare is not in evidence here. But it is apparently sufficient that the IRS is not after him...that is the well orchestrated dance I referred to. The IRS makes a deal on tips to avoid an ongoing hassle with each of the tens of thousands of tip recipients in a place like Las Vegas. They tipees make out but so does the IRS. It is not rare for tip workers to pay taxes on a higher income when considering buying a house. I even no of one case where a waitress overstated her income to increase her buying power.
I took the "on paper" to mean on the tax return. But regardless of whether he reports $17,000 or somewhat more than that, if in fact he earns $150,000 then that is what he should report. The fact that the IRS cannot audit everybody and therefore people get away with tax fraud is irrelevant. You seem to miss the fact that the ones being cheated are not the IRS, it's everybody who does pay their fair share.
Morality discussion aside, my guess is the biggest challenge you will face is getting the stated income loan on the 2nd place. 17K documented would not be enough to qualify, and stated are very rare today.
During the expanding housing market bubble, I heard variations of the same quote, "if I don't buy now, prices are only going to increase within the next year". And looking at the trends from 2002 to 2006, for example, you many understand their concern. I know of several people who took out "traditional loans", making adequate down payments, that after the "market correction", now have negative equity, and while they have the financial wherewithal to continue making payments, they feel justifiably hornswoggled by the banks.
Story after story abounds that financial institutions and their execs knew of the risks they were taking but held little concern because their livelihoods were never threatened. They took chances hoping to hit something akin to a 6-team parlay and get their massive payouts as a result, but if they went bust, it didn't matter. They'd still "earned" some bonuses and had golden parachutes awaiting them.
In the last decade, financial institutions have plundered from the tech sector and the housing market and now have their sights set on their next scam, the "cap-and-trade" environmental bill that recently passed.
To summarize, banks take risks, businesses take risks, and consumers take risks. But I place the blame for the housing bubble almost entirely on the shoulders of the banks who took advantage of their own arcane knowledge of finance to dupe customers into making rash purchases of value-inflated homes.
If I'm not mistaken, reporting only 17k on their W2s for 3 people, not only they don't pay any tax on their income, they even get extra money from the government (the money the rest of us honest citizen paid). Am I wrong?
Could not have said it any better myself. I DO pay taxes ...we have a thing in the service industry called tip compliance. It is an automatic # determined by the government that comes right out of our check every week.Also ALL credit card tips we make every day are taxed so believe me I pay plenty of taxes! Where did I mention even once that I am declaring BK? Do you people even read a post before you reply? Using stated income is NOT tax fraud for the above mentioned reasons. Stated income plans were created for a reason and we took advantage of them.
Quote:
Originally Posted by cls88
If I'm not mistaken, reporting only 17k on their W2s for 3 people, not only they don't pay any tax on their income, they even get extra money from the government (the money the rest of us honest citizen paid). Am I wrong?
I think you missed part of this thread thus why I'm posting the OP's response to these questions. Think this clears up the matter IMO
If I'm not mistaken, reporting only 17k on their W2s for 3 people, not only they don't pay any tax on their income, they even get extra money from the government (the money the rest of us honest citizen paid). Am I wrong?
I think you're referring to the earned income credit, and yes, depending on what actually is being reported as income, it's possible to receive a refund even if your tax liability is zero.
Thank you both for clearing this up for me. I just heard some people below certain income get money instead of paying tax. The OP is different because of the type of business he is in.
Here is the situation in a nutshell. We bought this house here in Vegas in 04 for $318,000. It is 1480 sq. ft. and out mortgage is 2k a month. The same exact house next door to us just sold for $121,000. Needless to say we are ****ed. We have been house hunting lately and have found houses THREE times the size in better neighborhoods for around 240-260K. These same houses sold for $600K three years ago. Now I gotta believe that these houses will show equity in the next year or 2 if they dont already and my house may take 10-15 years to get back to 318K.
Problem is we bought the house 4 years ago on stated income program. We are bartenders who only make 17K a year on paper but in reality make 150K a year combined. Not sure if they even offer a stated income anymore. We are spinning our wheels here. The house is 100%in her name. So the next house would be in my name. Besides ****ing up her near perfect credit for the next 7 years can someone please tell me why financially we souldnt foreclose on this 1st money pit. I am a bit green when it comes to this stuff but I am doing my research so if anyone has any words of advice I would appreciate them. Thanks!
Sounds to me like you are trying to figure out how to have the rest of America pay for your choices.
You further state how you are tax cheats who don't report all your income. Means your not even paying your fair share of taxes + you want to rip the rest of us off by walking away from your responsibilities.
I can't think of anything to say good about or to you. Therefore I will not comment further.
Do People Actually Read an Entire Thread B4 They Post????
Quote:
Originally Posted by olecapt
Comeon get it straight. His W2 says 17,000. That is about standard for a minimum wage tip worker. Actually that is high so he works a lot of hours or it is both of them. The IRS however knows that he is a tip worker and would audit him in an instant if he claimed only the $17,000. What he does declare is not in evidence here. But it is apparently sufficient that the IRS is not after him...that is the well orchestrated dance I referred to. The IRS makes a deal on tips to avoid an ongoing hassle with each of the tens of thousands of tip recipients in a place like Las Vegas. They tipees make out but so does the IRS. It is not rare for tip workers to pay taxes on a higher income when considering buying a house. I even no of one case where a waitress overstated her income to increase her buying power.
Quote:
Originally Posted by Joe3788
Perfectly put!!
Could not have said it any better myself. I DO pay taxes ...we have a thing in the service industry called tip compliance. It is an automatic # determined by the government that comes right out of our check every week.Also ALL credit card tips we make every day are taxed so believe me I pay plenty of taxes! Where did I mention even once that I am declaring BK? Do you people even read a post before you reply? Using stated income is NOT tax fraud for the above mentioned reasons. Stated income plans were created for a reason and we took advantage of them.
Quote:
Originally Posted by RCCCB
Sounds to me like you are trying to figure out how to have the rest of America pay for your choices.
You further state how you are tax cheats who don't report all your income. Means your not even paying your fair share of taxes + you want to rip the rest of us off by walking away from your responsibilities.
I can't think of anything to say good about or to you. Therefore I will not comment further.
Come on folks, PLEASE read entire threads along with responses B4 going off on someone. I know it's time consuming to go back 3 or 4 pages, but this has been asked, answered so many times that it's beyond absurd at this point JMO
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Do People Actually Read an Entire Thread B4 They Post????
