DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - How to get help if you are buying, or can’t sell, a home

**ATTILAGLIC** · 04-17-2009, 01:52 AM

Crusty what does this mean exactly - I am not gettng it. I am getting our house redy to try an lease it since we PCS'd - We have only been in it a little over two years and are not really upside down but I am not sure we can sell it.

It means if you take advantage of the Corps of Engineers "buy-out" program, whatever they shell out to cover the difference between what you owe and what it is worth is taxable income.. because they are "giving" you that money. In my case I owe about $455K on my house, which is currently only worth $263K. So 95% of the difference will leave me with a net of $185K in additional income for the year. That's gonna bump me up into the OMG tax bracket, so I am not sure how much I'll end up owing next year... but it certainly won't be $193K, so I'll still be WAY ahead!!

04-17-2009, 01:52 AM	#5
ATTILAGLIC Join Date Oct 2005 Posts 551 Senior Member	Crusty what does this mean exactly - I am not gettng it. I am getting our house redy to try an lease it since we PCS'd - We have only been in it a little over two years and are not really upside down but I am not sure we can sell it. It means if you take advantage of the Corps of Engineers "buy-out" program, whatever they shell out to cover the difference between what you owe and what it is worth is taxable income.. because they are "giving" you that money. In my case I owe about $455K on my house, which is currently only worth $263K. So 95% of the difference will leave me with a net of $185K in additional income for the year. That's gonna bump me up into the OMG tax bracket, so I am not sure how much I'll end up owing next year... but it certainly won't be $193K, so I'll still be WAY ahead!!
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