Atlanta Estate Planning Lawyer Blog

There is now tax relief for homeowners and an upper hand advantage for the Georgia Tax Attorneys and Georgia Real Estate Attorneys who represent and assist them. In a news brief issued by the IRS for the benefit of those with troubled loans, the government now says that if your mortgage debt is partly or entirely forgiven during 2007, 2008 or 2009 you may be able to claim special tax relief by filling out Form 982 and attaching it to your federal income tax return for that year. Usually, forgiveness of debt results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude from tax up to $2 million of debt forgiven on your primary residence. The limit is $1 million for a married person filing a separate return.

Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. The debt must have been used to buy, build, or substantially improve your principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.

Debt forgiven on second homes, rental property, business property, credit cards, or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. The Adams Law Offices is conveniently located in the heart of Buckhead in Atlanta, Georgia, near the intersection of Piedmont and Roswell Roads. We would welcome the opportunity to be of assistance to you regarding any type of tax related matter concerning debt relief or other type loan restructuring or loan workout matters. Please call us at (404) 467-8611 or 1-877-412-3267, to discuss your options, or send us a message through our confidential Web Site form.

Posted by Duncan H. Adams and Michael K. Sapp | Permalink | Email This Post

Posted In: CONTRACTS & AGREEMENTS , ESTATE PLANNING , FORECLOSURE , LOSS MITIGATION , REAL ESTATE , TAXATION & TAX PLANNING

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Foreign nationals may not fully understand the effect a green card has on his or her status for United States (“Federal”) tax purposes. The Federal Government taxes United States citizens and resident aliens on their worldwide income, regardless of their presence (or lack of presence) in the US. Nonresident aliens are only subject to Federal tax on their income connected to the United States.

For example, suppose you are a citizen of a foreign country and work full-time in a foreign country. While you may make no income in the United States and you only visit the United States a few weeks each year, the questions arises as to whether you owe Federal tax.

The answer may surprise you. It depends on whether you are deemed a resident alien or a nonresident alien. The test generally depends upon the number of days you are in the US. Most foreign nationals are aware of the “183 day” test, and keep careful track of their days of entry and leaving the US.

However, there is a second test. If you are a current green card holder, then you are deemed to be a resident alien. The number of days you are in the US does not determine your status for US tax purposes. Even if you have no presence in the US, you are still subject to Federal tax if you are a current green card holder.

This broad rule is justified by the US Congress because green card holders “have rights similar to those afforded US citizens (including the right to enter the US at will); equity demands that they contribute to the cost of running the government as much as citizens”.

Two exceptions likely mitigate Federal taxation. One is that a resident alien can claim a tax credit against his or her Federal tax for taxes paid in a foreign country. The other exception is that a tax treaty between the US and a resident alien’s home country may exempt US taxation of a resident’s income earned outside the US.

Federal taxation of foreign nationals is a complex subject. You should seek the legal representation of a tax lawyer and a tax expert. The Adams Law Offices offers representation from tax attorneys and tax experts who not only have worked in the private sector but have also worked with The United States Tax Court. We are ready to serve and assist you with your tax related matters and our Main Office is conveniently located in the heart of Buckhead. Please call us at 1-877-412-3267 or (404) 467-8611, to discuss your options, or send us a message through our confidential Web Site form.

Posted by Duncan H. Adams and Thomas J. Mihill | Permalink | Email This Post

Posted In: ESTATE PLANNING , FORECLOSURE , LOSS MITIGATION , REAL ESTATE , TAXATION & TAX PLANNING

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