No, but if the bank writes off any portion of the loan as a cancelled debt and reports it you on Form 1099-C, then you must include that on your tax return as income. Cancelled debt is taxed as income under the Internal Revenue Code.
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Related Questions
Can the IRS tke your tax refund if your car is repossessed?
No.
If you file Chapter 13 and change your mind and your car is repossessed will the IRS take your taxes for the car?
NAKEI, I dont KNOW the answer but I dont see why they would. How would repoing your car give you any income for the IRS to tax?? Is a collector/repo person threatening you?No, the IRS will not take your taxes, on a repossessed vehicle or other property. However, the lender does have various legal options to get money owed them by an individual. This includes the ability to file a claim with the courts to garnish your wages and even your tax refunds.You should check the laws in your state regarding "garnishment" because not all state allow for wage garnishment and that may also affect where your tax refunds can be garnished.
Did your car get repossessed by the IRS?
The IRS can reposses everything-- Even your clothes!!! Technically yes, but it very rarely happens. An IRS lien technically attaches to EVERYTHING you own (even your toothbrush), but that doesn't mean the IRS is going to come take your toothbrush.
Do they take a repossessed car to a local lot?
Typically, no.
Ways to cause your car to be repossessed?
The only way you can have your car repossessed would be to not make any payments. If you have taken out a loan and have not made payments, they will take your car away.
Can they take your personal property if a used car is repossessed?
yes
What happens if you get your car repossessed?
if i get my car repossessed, can they put a llien on the house?
How can you locate your repossessed car?
Your car was probably repossessed by the lender who owns the car until you pay for it. Call your lender and they will be able to tell you how to locate your repossessed car.
Do you have to notify the DMV if your car was repossessed?
NONE, the lender will take care of it
Can a car be repossessed from your employers private driveway .?
Yes. If the person repossessing the car finds it then they can take it!
How do you get your car repossessed?
If you don't pay your car payments, people go to your house and take it away.
Can your car be repossessed due to no registration?
No, a car can not be repossessed due to having no registration. A car can be repossessed for non payment. The police can have a car towed to an impound lot if there is no registration.
Do you have to return a car to the dealer if you don't pay taxes?
No, but the IRS may take the car to satisfy the tax debt. They can also freeze banking savings/checking accounts and take your pay check. You don't want to play around with them. Pay the taxes and you can make payments to them if you can't pay the full amount.
Can your car be repossessed if you lose your job?
No, but your car can be repossessed if you don't make the payments.
Can you be sent a 1099 form on a car that repossessed?
I had the same question and just got off the phone with the IRS and they said yes and to read Publication 4681.
Your car was repossessed and is now parked in a public place can you take it back?
Not without being a car thief.
If you file for bankruptcy and your car is repossessed can a friend take a loan out for you to purchase a car?
Of course, it won't legally be your car however.
Can a car be repossessed when 1 payment is left?
As long as you owe them money they can take it.
Can a car be repossessed from a car dealership?
if the car dealership does not pay for the car in full or pay their bills then the car would most likely be repossessed
Can a car be repossessed with a person in the car?
No.
When a car is repossessed what do you do with the insurance?
When a car has been repossessed the person paying the insurance should cancel it.
Can the IRS take your home and or car if you owe back taxes?
Yes, they may take anything worth value, that is in your name. Cars, Houses, Mobile Homes, Campers, Motorcycles nothing is exempt if it comes down to that.
Can you legally go and take your car back after it has been repossessed?
NO,thats Grand Theft.
Can car be repossessed on locked property?
It can if the lender gets a writ of replevin, the deputy can take it.
If your car is repossessed in the state of NC can your wages be garnished?
No not in the state of NC - only for child support and taxes. Wanda Improve Credit, LLC
