Posted by Jimmy on August 12, 2008 at 06:31:29:
In Reply to: Hypothecation - if something goes wrong posted by G.O. on August 11, 2008 at 20:26:24:
let's see.
1. if you default on your new loan, the lender can step into your shoes on the underyling note. its a process to get into that position, but--in oversimplified terms--they take over your note.
2. be aware of something. if the underlying happens to be an installment note in your hands (i.e., you are reporting gain under the I-method), the act of hypothecating that note trips all the underlying gain.
consult your tax advisor.
- Re: Hypothecation - if something goes wrong G.O. 11:00:13 08/12/08 (1)
- Re: Hypothecation - if something goes wrong Jimmy 04:28:29 08/14/08 (0)