Phantom Income for Short Sales
July 10, 2014 Leave a comment
So let’s see, the IRS and those who support it, are trying to tell me that if you put $30,000 down to buy a $250,000 home and that home ends up selling for $125,000 eight years later, that because you borrowed $225,000, with closing costs and other expenses, that you have this so-called phantom income and that the lending Bank must issue you a 1099 income tax form for the deficiency. Thus, you are liable for some amount of taxation because it’s Phantom Income because somehow you received some phantom benefit.
Let’s see than. The money is derived from a phantom issued debit, your house was worth a Phantom value based on a Phantom debt based monetary system that drove up home prices using Phantom underwriting guidelines and phantom insurance policies based on Phantom securities, also underwritten using Phantom quality controls.
Our infamous politicians have failed this year to enact IRS regulations negating the tax liability for this Phantom Income because, I’m told it’s a low priority issue and as soon as they can actually pass something in a bi-partisan manner, it will be attached and that it has a 50/50 change of this happening. Perhaps our politicians are also phantom legislators who spend most of their time catering to Phantom Special Interest Groups.
And people wonder why I want to abolish the Federal individual Income Tax liability for most Americans.