Is it considered personal debt or non-personal debt when receiving a 1099c on a home that had a deed in lieu of forclosure this year, which was originally purchased as a main home 2003 and it became a rental property in 2008?
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Personal debt is simply a non-business debt. Examples of personal debt are auto loans, student loans, mortgages, credit cards, etc.
A non-personal debt (business debt) is a debt acquired because of a profit motive and to fund a business.
The courts have determine that a home that is later used as a rental is still considered a personal debt. It is the initial intent of the loan that determines the character of the debt.
Personal debt is simply a non-business debt. Examples of personal debt are auto loans, student loans, mortgages, credit cards, etc.
A non-personal debt (business debt) is a debt acquired because of a profit motive and to fund a business.
The courts have determine that a home that is later used as a rental is still considered a personal debt. It is the initial intent of the loan that determines the character of the debt.
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