Recently Passco Palm Desert issued K-1’s to their investors for Cancellation of Debt Income. This tax bill will be in addition to the losses suffered by the investors for the failed Passco Palm Desert Investment.
When canceled debt is taxable:
If you do not qualify for an exception or exclusion, you must report the canceled debt as ordinary income on your federal tax return. This applies to various types of debt, including credit card balances, mortgage modifications, and foreclosures. The amount of income is usually reported on Form 1040, Schedule 1.
Situations where canceled debt may not be taxable:
The IRS provides several exceptions and exclusions that may allow you to avoid or defer tax on canceled debt. In these cases, you must file Form 982, "Reduction of Tax Attributes Due to Discharge of Indebtedness," to report the exclusion and reduce certain tax attributes.
Exclusions:
When a commercial lender or creditor cancels or forgives a debt, the amount is generally considered taxable income to the debtor. The IRS considers the amount of debt discharged an "accession to wealth" because the taxpayer received a benefit without paying for it. The creditor will typically send a Form 1099-C, "Cancellation of Debt," to both you and the IRS for any canceled debt of $600 or more.
Passco Palm Desert, LLC is under investigation by the securities law firm Soreide Law Group. Passco Palm Desert, LLC, raised capital through private offerings through a network of brokerage firms.
Passco Palm Desert, LLC's business model of raising capital through private offerings raises concerns, as these investments are often illiquid and high-risk. Investors seeking residential apartment housing investments should carefully scrutinize the underlying assets and potential returns before investing. The significant value loss reported by investors suggests potential misrepresentation or unrealistic projections by Passco or the brokerage firms involved. The true winners in the deal were the brokers and brokerage firms who recommended Passco as they were awarded generous commissions. Soreide Law Group's focus on individual arbitration through FINRA may be advantageous for investors seeking tailored resolutions and avoiding the complexities of class actions.
If you suspect your broker recommended unsuitable investments in Passco Palm Desert, LLC, contacting Soreide Law Group for a free consultation can help you determine your legal options. If you or a loved one experienced significant financial losses in Passco Palm Desert, LLC, contact Soreide Law Group for a free consultation at (888) 760-6552.
According to SEC filings the brokerage firms who may have sold Passco Palm Desert are listed below. Passco sold investments to individuals who were looking to invest in residential apartment housing. Soreide Law Group has been contacted by several investors who have been recently told by their financial advisors that their investments have lost significant value. Soreide Law Group files lawsuits in the Financial Industries Regulatory Authorities Dispute Resolution forum. This is not a class action so Soreide Law is able to aggregate all your claims against your broker for every bad investment sold.
Berthel Fisher & Company Financial Services, Inc.
Cabot Lodge Securities LLC
Whitehall-Parker Securities, Inc.
Centaurus Financial, Inc.
Colorado Financial Service Corporation
Concorde Investment Services, LLC
Courtlandt Securities Corporation
Crown Capital Securities, L.P.
DFPG Investments, Inc.
Emerson Equity LLC
Great Point Capital LLC
Huntwicke Securities, LLC
Independent Financial Group, LLC
JRL Capital Corporation
Kalos Capital, Inc.
Lewis Financial Group, L.C.
Lightpath Capital, Inc.
McDermott Investment Services, LLC
PrimeX
RCX Capital Group, LLC
Sandlapper Securities, LLC
Somerset Securities, Inc.
Triad Advisors LLC
Wealthforge Securities, LLC
PASSCO PALM DESERT INVESTORS CALL 888-760-6552 for a free consultation on how to recover your investment losses today!
Recently Passco Palm Desert issued K-1’s to their investors for Cancellation of Debt Income. This tax bill will be in addition to the losses suffered by the investors for the failed Passco Palm Desert Investment. When canceled debt is taxable: If you do not qualify for an exception or exclusion, you must report the canceled […]
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