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Answers (5)
- Sandra Green-Murray, "sgmmgs"
- Contributions:147
You should consult a tax advisor.
- Simon Mills, "Mills Realty"
- Contributions:1858
Assuming there is no loan forgiveness the modification will have little effect on your taxes. Your interest deduction though probably will be less. To be sure you should contact your tax professional to see how it effects your specific situation.
- Mya Berlyant, "MyaBerlyant"
- Contributions:266
Hi. I'm a tax professional in Los Angeles (in addition to being a real estate broker).
A loan modification does not directly impact your taxes unless the bank forgives part of the balance (most don't).
Indirectly, you will be impacted in terms of itemized deductions because your mortgage interest will be lowered so you won't have as many deductions. You may want to re-adjust your withholdings from pay (decrease by one) so that you don't have a tax liability at the end of the year.
A loan modification does not directly impact your taxes unless the bank forgives part of the balance (most don't).
Indirectly, you will be impacted in terms of itemized deductions because your mortgage interest will be lowered so you won't have as many deductions. You may want to re-adjust your withholdings from pay (decrease by one) so that you don't have a tax liability at the end of the year.
- Carl Henker, "Carl Henker"
- Contributions:755
A good question for a tax advisor or accountant. Seek the proper professional advice and not the answers you may receive here. Everyone's situation is different and needs to be looked at in detail.
That sounds like a perfect question for your CPA or tax attorney and a bad question for any lender to attempt.
how does a loan mocification affect my taxes?
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