Taxes and the Sub-Prime Mess
I have questions concerning the Sub-Prime mess, the Foreclosure Crisis and the Economic Stimulus Rebates and thank you in advance for your thoughtful answers...
What impact has the mortgage products boom--ARM's, 100% no-down loans, etc. had on Federal taxes and on local taxes? Anything significant? It would seem that ARM's benefit the Fed in the short run because less interest is being paid--therefore less mortgage interest deductions--but in the long run--when more interest is paid--the Fed takes in less?
What about Foreclosures? What is the tax hit for local governments? I assume property taxes suffer? Does the bank who takes over the property have to pay the taxes on it? Do they? If, because as we've seen with some of these loans, it is difficult or impossible to assign ownership--who pays the taxes? Do any of these Foreclosure proposals take that into consideration?
What about for tax payers going through foreclosure? If you give back your house do you get a 1099 for the "income" you "receive" via not paying the debt? How does that work?Thanks!
What impact has the mortgage products boom--ARM's, 100% no-down loans, etc. had on Federal taxes and on local taxes? Anything significant? It would seem that ARM's benefit the Fed in the short run because less interest is being paid--therefore less mortgage interest deductions--but in the long run--when more interest is paid--the Fed takes in less?
What about Foreclosures? What is the tax hit for local governments? I assume property taxes suffer? Does the bank who takes over the property have to pay the taxes on it? Do they? If, because as we've seen with some of these loans, it is difficult or impossible to assign ownership--who pays the taxes? Do any of these Foreclosure proposals take that into consideration?
What about for tax payers going through foreclosure? If you give back your house do you get a 1099 for the "income" you "receive" via not paying the debt? How does that work?Thanks!
