Questions about IRS payment plans/undue hardship My parents just retired and dipped into their retirement to help buy my wife and I a home. They bought the home outright in 2015. Now that they filed their taxes, they owed are a staggering 47k. They were told by an attorney that since they own three houses, (their home, a family home they took a mortgage out on a few years back that they rent to a family member and the house they bought us, but is still in their name), they would not qualify for the payment program.
My questions is, if they sign over the house to us as a gift would that possibly increase the chances of them qualifying for the payment program or even the undue hardship as the two other houses? If sold at full market value, the other houses would not be enough to pay the total due to the mortgages on the property.
Their credit and ours are not good enough to secure a loan on the house. I have been working on my credit, but I do not believe it will be ready to get the mortgage to pay them for the house by the end of their 6 month extension which ends in October.
Any suggestions/ideas/comments would be appreciated. Our main goal is to not lose the house, as well as trying to find enough time to get my credit right, so we can get the mortgage to pay them the value of the house. Which was the plan all along |