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The research phase of the tax lien purchase is going to be the distinction between hitting a place run-redemption with full interest paid, possibility even a wonderful slam-getting real estate for pennies on the dollar OR owning a piece of environment disaster history, made a parcel of useless land that At this point you get to pay for taxes available on.
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Debt forgiveness, you see, is treated as taxable income. Why? From a nutshell, particularly gives cash and you pay it back, it’s taxable. Like you have to taxes on wages from a job. System of the reason that debt forgiveness is taxable is because otherwise, it would create a huge loophole in the tax password. In theory, your boss could “lend” serious cash every 2 weeks, with the end of the season they could forgive it and none of also you can taxable.
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