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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Mike Hagerty who wrote (612)	12/11/1998 11:58:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Mike, #1 see a CPA #2 Try this with your CPA for an idea. Where is the other guy located? far away? (better if he is) Have him have his mortgage re-fi held after Christmas. Have your mortgage funds withheld at closing and the attorney (your attorney or his attorney, not sure if it makes a difference for IRS) put the funds in his trustee account, and immediately draw you your full pay-off. THEN the attorney drops the payment to you in the mail on December 31 in the morning, sending it certified return receipt requested to your address. This documentation proves he mailed it in 1998. Then you will get the mail on January 2nd. You recognize the income in 1999 because that's when you received it. A KEY offsetting issue here is CONSTRUCTIVE RECEIPT. That's something your CPA will need to assure you of. Good luck, Colin

To: Mike Hagerty who wrote (612)	12/11/1998 1:35:00 PM
From: mod	Read Replies (1) \| Respond to of 1383

Mike, I'm not sure, but I thought they changed the law so you can't deduct refinancing charges immediately, you have to amortize them over the life of the refinancing. If so, there is no big advantage to your borrower to rush to refinance by year end. Dennis

To: Mike Hagerty who wrote (612)	12/11/1998 6:28:00 PM
From: Colin Cody	Read Replies (3) \| Respond to of 1383

As mentioned by a couple replies, the OTHER GUY may have his own "tax problems" to deal with. If this is a refinance because he is getting say a lower interest rate on the same amount of money he is paying you off with, then any refinance costs or points are at best, amortized over the life of the new loan. If the old loan being paid off (your loan with him) was amortizing costs, then those cost now become immediately deductible this year under most circumstances. Colin