Friday, March 2, 2018

DID YOU KNOW??

  • SENIOR HOMEOWNERS CAN BUY A NEW HOME AND HAVE NO MONTHLY MORTGAGE PAYMENTS!!
  • Congress passed the HECM for Purchase Plan allowing Seniors to get a new home.
  • Homeowners keep more of their money, and have no monthly mortgage payments.
  • Seniors can sell their current home and only use a portion of the sale's proceeds as a down-payment toward a "downsized" home.
  • The Revers Mortgage for Purchase picks up the difference and you;ll have no monthly mortgage payments ever!

Tuesday, June 7, 2011

How To Lower Your Property Tax Bill

How To Lower Your Property Tax Bill

Its common for the tax assessors office to continue charging the higher amount until the owner goes through the process of contesting the bill. Fortunately, its realitively easy to have your property tax assessment lowered…here’s how:


To get your property taxes reduced on the basis of the recent decline in market value:

  1. Search Yahoo! or Google to find the Web site for your County Tax Assessor’s Office or Tax Collector’s Office.
  2. Go to the Forms section and look for a form with the words “reassessment request” or “decline in market value.” If you can’t find it, give the office a ring and ask them to fax, mail or email the form to you.Usually the request will ask you for (a) an estimate of the current market value of your home, and (b) a list of recent, comparable sales in your neighborhood supporting that estimate of value.
  3. Call Myself or Natosha and ask for help to complete the form for you or to at least provide the information you need about comparable sales.
  4. Alternatively, find a trustworthy online comparables site, like CyberHomes.com, where you can get both an estimated value and a list of the comparable sales on which it was based.
  5. Keep in mind that you are trying to make the case that your property value is significantly lower now than when you bought it, so list legitimate comparable sales which support that argument or you are wasting your time! And keep in mind that if you bought your home 10 or 20 years ago, your property’s assessed value might not be out of whack with current market values, even though your home’s market value may have declined from the peak of the market.
  6. Sign it and mail it! Allow several weeks, then call and check on the progress of your request. If it’s accepted, you’re golden — for this year. Most areas require you to revisit the reassessment issue every year. If it’s denied, there will be a more formal application and appeals process available to you, and you can decide at that time whether it makes sense to undertake that.

Thursday, March 3, 2011

5 Tax Tips, Tricks and Traps for Homeowners


Ask a roomful of homeowners what's so great about owning versus renting, and you'll hear them holler in unison: "the tax deductions!" And it's true – homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns.

That means that if you're in a 28%
tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.

At tax time, it's critical to know what you're entitled to, so you can claim it. So, here are five essential need-to-knows about home-related income tax tips to help you get the most tax-reducing bang out of your home-owning buck – and to avoid hefty home ownership-related tax traps.

1. You Have to Itemize Your Return to Claim Your Deductions

During the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated (it won't be, not anytime soon), it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. If you own a home and otherwise have a fairly simple return, it might be tempting just to take the standard deduction – and if your mortgage, property taxes and income are low enough, the standard deduction might outweigh your homeowners' deductions. But you'll never know if you're losing out on the tax advantages of itemizing unless you try; before you grab a pen and start filling in that 1040-EZ grab those forms from your mortgage company and answer the questions on tax software like TurboTax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill – or the highest tax refund – for you.

2. Plan Ahead and Be Strategic When Taking a Home Office Deduction

According to the Small Business Administration, the average home office deduction is $3,686 – multiply that by your tax bracket – 15%, 20%, 30% or whatever it is, and that's what you'll save on your taxes by writing off your home office. Know, though, that the space you designate as your home office cannot be exempted from capital gains tax when you sell your home later. The $250,000 (single)/ $500,000 (married filing jointly) income tax exemption for capital gains is only good on your personal residence, after all – not including any space in your home you've claimed as your tax-advantaged office. If you foresee selling your home for much more than you bought it in the future, near or far, discuss this with your tax preparer to see if the few hundred bucks you save is worth the capital gains complication later.

3. Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012

While the long-term housing outlook is beginning to look up, 2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.

Under the
Mortgage Debt Forgiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But right now, banks are taking many months, or even years, to work out mortgages in all of these ways; the average foreclosure in New York state right now occurs only after 22 months of missed mortgage payments. If you foresee any of these outcomes in your future, don't put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won't have income taxes to add as the insult on top of your significant housing injury.

4. Project the Income Tax Consequences of a Refinance or Property Tax Appeal

Homeowners everywhere are working on applying for a lower property tax bill on the basis of the last few years' decline in their home's value. Those who have equity have flocked en masse to refinance their 7% home loans into the 4% to 5% rates of the last few months. These strategies offer some of the heftiest household savings out there for the corresponding investment in time and money they take. But here's a caveat for savvy homeowners who slash these costs: remember that property taxes and mortgage interest, the very costs you're minimizing, are also the basis for the major tax benefits of being a homeowner. So plan ahead for your income tax deductions to go down along with your taxes and interest.

5. Don't Forget Those Closing Costs

If you bought or refinanced your home in 2010, you may be so focused on your mortgage interest and property tax deductions that you forget all about your closing costs. Any origination fees or discount points that were paid to your mortgage lender at closing are tax deductible on your 2010 return, get this – even if the seller paid your closing costs. If you can't figure out exactly what you paid, look for your HUD-1 settlement statement, that legal sized paper full of line item credits and debits that you should have received from your escrow provider or title attorney at, or just after, closing. Can't find it? Drop your real estate agent or mortgage broker an email; they can usually get a copy to you quickly.

Note: This post first appeared on Wallet Pop on 2.28.2011.

Tuesday, March 1, 2011

How To Have A Positive Mental Mindset Now | 11 Steps To A New Attitude.

Top 11 Ways to Keep a Positive Mental Mindset

In the Chinese language, the symbols for the word “crisis” are translated as “Opportunity Riding on the Dangerous Wind.” In other words, crisis and opportunity are synonymous. Learning to persist and respond effectively through a crisis is the essence of personal growth. To avoid becoming distracted, depressed or frustrated, follow these 11 steps and take control of your future:

1. Stop brewing and start doing. Action is one of the best methods of overcoming stagnation. Walking, running, speaking with people, learning something new…ACTION is the best cure for inaction.

2. Remember that persistence can turn adversity into greatness. As the Reverend James Keller once noted, “Abe Lincoln lost is job in 1832. He was defeated for the legislature, also in 1832. He failed in business in 1833. He was elected to the legislature in 1834. His sweetheart died in 1835. He suffered a nervous breakdown in 1836. He was defeated for Speaker in 1838. He was defeated for nomination for Congress in 1843. He was elected to Congress in 1846. He lost his re-nomination for Congress in 1848. He was rejected for land officer in 1849. He was defeated for the Senate in 1854. He was defeated for the nomination for vice president of the United States in 1856. He was again defeated for the Senate in 1858. Abraham Lincoln was elected President of the United States in 1860.

3. Inventory your BAG regularly: Review your Blessings, Accomplishments, and Goals. You’ll be surprised how many reasons you have for being grateful, rather than depressed, anxious or worried.

4. Focus on what you are here to GIVE. Be in a mindset of service. How can you help as many people as possible?

5. Stay connected. Cultivate lilies and avoid leaches. If someone or something is bringing you down, replace it with someone or something that brings you up. You have this choice every day.

6. Stick to your Media Free Morning. No news, talk radio or print…Instead, choose to read inspirational nonfiction, listen to uplifting music or books on tape, and congregate with lilies, not leaches.

7. Take the blame and credit. Acknowledge your position in life honestly and openly. How did you get here and what are you doing to change?

8. Make a self-evaluation list of two columns. In the “I am” (or “Assets”) column, write down 10 things you are good at. In the other column, write down 10 things you need to improve on. Take the first three liabilities and schedule an activity to help you improve each of these three areas. Forget about the rest of your liabilities. Relish and dwell on all 10 of your best assets. They will take you anywhere you want to go in life.

9. Invest in your education. Since the only real security in life is the kind that is inside each of us, practice what Ben Franklin wrote: “If an individual empties his purse into his head, no one can take it from him.” If you aren’t taking action because you don’t know how to, ask for help.

10. Concentrate all your energy and intensity on the successful completion of your current goal. FOCUS = Follow One Course Until Successful. Forget about the consequence of failure. Failure is only a temporary change in direction to set you straight for your next success.

11Proverbs 3:5-6 “Trust in the Lord with all your heart, and lean not on your own understanding; in all your ways acknowledge Him and He shall direct your paths.”

Saturday, February 26, 2011

Are mortgage loan modifications really working…

Are Mortgage Loan Mods Really Working? Wells Fargo Loan Mod Program

http://timandjulieharris.com/wp-content/uploads/2011/02/Screen-shot-2011-02-22-at-12.12.08-PM-300x249.pngAre mortgage loan modifications really working…Well, no.

Matter of fact, it appears that the Obama Administrations HAMP program (major element of HAMP being loan mods) may be canceled very soon.

Wells/ Fargo describes how their loan modifications work…or don’t work. What is not discussed are the terms of a typical loan modification. For example, most loan mods are only temporary. Most loan mods do nothing with the negative equity. Most loan mods will temporarily reduce the borrowers payment by 50% (give or take). What happens to the 50% they are not paying? It’s added to their unpaid loan balance. You get the idea. Loan mods in their present form are nothing other than more…extending and pretending.

It’s crucial to help clients understand the true ramifications of a loan mod. Bottom line, its temporary relief. The negative equity remains with the home 99% of the time. For many underwater owners the smartest move truly is a Short Sale.

Notice: 2008 Home Buyer Tax Credit…Its Pay Back Time

Did you purchase a home in 2008??

If the $7500 first time home buyer tax credit was used to purchase the home…its payback time.

Unlike the buyer ‘credits’ that came in 2009 and extended into 2010 the 2008 $7500 credit was in essence a loan. Now, that loan is due.

For many people who purchased a home for the first time in 2008, it’s payback time.

It sounded like a great deal: become a first-time homebuyer and pocket up to $7,500 in a tax credit. But if you bought that house in 2008 and received the credit, you’re required to start paying it back – now.

That’s because the credit was actually an interest-free loan provided by the government to stimulate a near-dead housing market.

Unlike the homebuyer credits of 2009 and 2010, this one must be paid back over 15 years beginning with this year’s tax return. For someone who got $7,500, that’s $500 a year.

“This is not a freebie,” said Jackie Perlman, a tax analyst at H&R Block’s Tax Institute.

The 2008 credit was available to qualified homebuyers who purchased after April 8, 2008, through the end of that year. The IRS has sent letters reminding folks who fall into this category.

Many have been caught off-guard. They either forgot that the credit was a loan, or believed the loan had been forgiven as Congress subsequently passed different versions of the homebuyer credit that did not require a payback.

“I had one client who called me in a slight panic,” said Jonathan Horn, a certified public accountant. “People are confused.”

If you got the credit and have sold your house or it is no longer your primary residence, the total amount you owe is due on the return for the year those events took place, with some exceptions.

You can choose to accelerate your payments. While the loan is interest-free, some might want to pay it back sooner rather than later.

“A loan is still something hanging over your head,” Perlman said.

“Some people will say, ‘Let me get this over with.’”

Monday, February 21, 2011

Taxes Owed After Short Sale or Foreclosure?

Taxes Owed After Short Sale or Foreclosure? | IRS Form 982, Mortgage Forgiveness Debt Relief Act

Submitted by Tim Harris on February 17, 2011 – 5:18 pm4 Comments | Popularity: 3% [?]

After a short sale or a foreclosure, will there be taxes owed on the ‘forgiven debt’?

Defaulting homeowners seek the advice of an accountant of an attorney.

Consult your CPA for more details, but the bottom line is: most homeowners will not owe tax on the forgiven amount. Prior to the Mortgage Forgiveness Debt Relief Act (HR3648), homeowners of primary residences were subject to a “Phantom Tax” on whereby the amount forgiven would count as income. Since the passage of this retroactive law in December 2008, eligible homeowners still report the cancelled debt as income, but they also are granted exclusion to write off the income. The new write off only applies to forgiven debt on primary residences and cancelled debt up to $2,000,000. If you acquired a home equity line of credit (HELOC) after closing that was not used to improve the property, then forgiveness of that loan may be subject to tax.

If you had debt cancelled and are no longer obligated to repay the debt, you generally must include the amount of cancelled debt in your income. However, if it was a discharge of qualified principal residence indebtedness, you may be able to exclude all or part of this amount from being included in your income.

What is qualified principal residence indebtedness?

Qualified principal residence indebtedness is a mortgage that you took out to buy, build, or substantially improve your principal residence. The mortgage must be secured by your principal residence. Any debt secured by your principal residence that you use to refinance qualified principal residence indebtedness is treated as qualified principal residence indebtedness. However, only up to the amount of the old mortgage principal just before the refinancing qualifies for exclusion. Any additional debt that you incurred to substantially improve your principal residence is also treated as qualified principal residence indebtedness.

If the amount of your original mortgage is more than the total of the cost of your principal residence plus the cost of any substantial improvements, the full amount of the original mortgage does not qualify for exclusion. Only the debt that is not more than the cost of your principal residence plus improvements is qualified principal residence indebtedness.

What amount of cancelled debt can be excluded from income?

The exclusion applies ONLY to debt discharged after 2006 and before 2013. The maximum amount that you can treat as qualified principal residence indebtedness is $2 million ($1 if filing Married Filing Separately).

You cannot exclude from income discharge of qualified principal residence indebtedness if the discharge was for services performed for the lender or on account of any other factor not directly related to a decline in the value of your residence or to your financial condition.

Ordering rule: If only a part of a loan is qualified principal residence indebtedness, the exclusion applies only to the extent that the amount discharged exceeds the amount of the loan (immediately before the discharge) that is not qualified principal residence indebtedness.

Example: Assume your principal residence is secured by a debt of $1 million, of which $800,000 is qualified principal residence indebtedness. If your residence is sold for $700,000 and $300,000 of debt is discharged, you would only be able to exclude $100,000 of debt (the $300,000 that was discharged minus the $200,000 of nonqualified debt). The remaining $200,000 of nonqualified debt may qualify in whole or in part for one of the other exclusions, such as the insolvency exclusion.

From the IRS:

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.
Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.
Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.
Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.
These exceptions are discussed in detail in Publication 4681.

What is the Mortgage Forgiveness Debt Relief Act of 2007?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does exclusion of income mean?
Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.

Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?
Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.

How long is this special relief in effect?
It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.

Update:

The Emergency Economic Stabilization Act of 2008 extended the exclusion from gross income for the discharge of qualified principal residence indebtedness by an additional 3 years. The exclusion now applies to debt discharged after 2006 and before 2013. See Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), and Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (For Individuals), for more information.

Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?
The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in Publication 4681.

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

Do I have to complete the entire Form 982?
No. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.

Where can I get this form?
If you use a computer to fill out your return, check your tax-preparation software. You can also download the form at IRS.gov, or call 1-800-829-3676. If you call to order, please allow 7-10 days for delivery.

Download IRS Form 982 Here.

How do I know or find out how much debt was forgiven?
Your lender should send a Form 1099-C, Cancellation of Debt, by February 2, 2009. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.

Can I exclude debt forgiven on my second home, credit card or car loans?
Not under this provision. Only cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes qualifies for this exclusion. See Publication 4681 for further details.

If part of the forgiven debt doesn’t qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion under a different provision?
Yes. The forgiven debt may qualify under the insolvency exclusion. Normally, you are not required to include forgiven debts in income to the extent that you are insolvent. You are insolvent when your total liabilities exceed your total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982. Publication 4681 discusses each of these exceptions and includes examples.

I lost money on the foreclosure of my home. Can I claim a loss on my tax return?
No. Losses from the sale or foreclosure of personal property are not deductible.

If I sold my home at a loss and the remaining loan is forgiven, does this constitute a cancellation of debt?
Yes. To the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of indebtedness income. If the amount forgiven or canceled is $600 or more, the lender must generally issue Form 1099-C, Cancellation of Debt, showing the amount of debt canceled. However, you may be able to exclude part or all of this income if the debt was qualified principal residence indebtedness, you were insolvent immediately before the discharge, or if the debt was canceled in a title 11 bankruptcy case. An exclusion is also available for the cancellation of certain nonbusiness debts of a qualified individual as a result of a disaster in a Midwestern disaster area. See Form 982 for details.

If the remaining balance owed on my mortgage loan that I was personally liable for was canceled after my foreclosure, may I still exclude the canceled debt from income under the qualified principal residence exclusion, even though I no longer own my residence?
Yes, as long as the canceled debt was qualified principal residence indebtedness. See Example 2 on page 13 of Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

Will I receive notification of cancellation of debt from my lender?
Yes. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form.

What if I disagree with the amount in box 2?
Contact your lender to work out any discrepancies and have the lender issue a corrected Form 1099-C.

How do I report the forgiveness of debt that is excluded from gross income?
(1) Check the appropriate box under line 1 on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2. Any remaining canceled debt must be included as income on your tax return.

(2) File Form 982 with your tax return.

My student loan was cancelled; will this result in taxable income?
In some cases, yes. Your student loan cancellation will not result in taxable income if you agreed to a loan provision requiring you to work in a certain profession for a specified period of time, and you fulfilled this obligation.

Are there other conditions I should know about to exclude the cancellation of student debt?
Yes, your student loan must have been made by:

(a) the federal government, or a state or local government or subdivision;

(b) a tax-exempt public benefit corporation which has control of a state, county or municipal hospital where the employees are considered public employees; or

(c) a school which has a program to encourage students to work in underserved occupations or areas, and has an agreement with one of the above to fund the program, under the direction of a governmental unit or a charitable or educational organization.

Can I exclude cancellation of credit card debt?
In some cases, yes. Nonbusiness credit card debt cancellation can be excluded from income if the cancellation occurred in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See the examples in Publication 4681.

How do I know if I was insolvent?
You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.

How should I report the information and items needed to prove insolvency?
Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.

To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982.

My car was repossessed and I received a 1099-C; can I exclude this amount on my tax return?
Only if the cancellation happened in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See Publication 4681 for examples.

Are there any publications I can read for more information?
Yes.
(1) Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) is new and addresses in a single document the tax consequences of cancellation of debt issues.

(2) See the IRS news release IR-2008-17 with additional questions and answers on IRS.gov.