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Permalink Reply by Wayne Brooks on December 10, 2013 at 8:16am

If the law is extended, they are covered.

If the law is not extended, they are not.  Sellers need to talk to a CPA regarding the Insolvency test (IRS publication 982) to see what, if anything, they may owe.

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Permalink Reply by Sheyenne Schultz on December 14, 2013 at 12:40pm

IRS INSOLVENCY WORKSHEET  Even if this doesn't get extended...don't worry too much. All a seller has to do is the IRS insolvency test.... on the insolvency worksheet   click on the link  or you can google IRS insolvency worksheet

if a seller's debts add up more than their assets...they are insolvent....  you can't get blood from a turnip...

read the rules  :)

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