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Established Member
Posts: 64
Registered: ‎09-11-2011
0

REPO paid off

So, I paid my guys Car repo off.  I paid off the full amount of the charge off I did not take just pay this amount.

 

He said last year he had to pay taxes on the amount that was written off.  I know for a fact nothing was written and the full car loan was paid off.

 

I didn't know he paid it and second I paid the amount.

 

Is this legal and what should or who should i contact about this?

 

I didn't know until now about this, When the loan was paid off they sent me the title of the car. 

thanks

Valued Contributor
Posts: 2,982
Registered: ‎02-09-2012
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Re: REPO paid off

I may just be really tired, but I do not understand what you typed.

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Mega Contributor
Posts: 15,442
Registered: ‎04-09-2011
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Re: REPO paid off


Repo-ed wrote:

I may just be really tired, but I do not understand what you typed.


+1

 

little lost as well....




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Established Member
Posts: 64
Registered: ‎09-11-2011
0

Re: REPO paid off

ok sorry,

 

My guy had a car......he fell behind 1 month on the payment.  Chryseler put the car into repo mode because of the late fee never paid.  I in turn called chryselor and paid the entire 12,000 loan off.  I did not do it for a lesser amount ie. 20% of loan amount.  They said I can take a reduction but it would said PAID but with lesser charge off amount.

 

I chose to pay the entire amount so the CR would reflect this repo-paid in full.

 

I thought if you do not pay the entire amount due, one would have to pay taxes on the unpaid loss.

 

There was no unpaid loss, I paid the entire loan, so no taxes should of been paid on the repo.  This is what I assume.

 

Hope this helps

Established Contributor
Posts: 977
Registered: ‎02-08-2012
0

Re: REPO paid off

Yes, if you paid in full, there should be no tax implications.  Are you saying that he was charged tax by the IRS?  If so, the OC should have sent him a 1099-C showing the forgiven amount.  Did he get one of those?  If so, I would start by contacting the OC and if necessary, the IRS.

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Established Member
Posts: 64
Registered: ‎09-11-2011
0

Re: REPO paid off

No I don't think he did.  He said he paid the taxes.  I will look into this tomorrow.  Thank you

Established Member
Posts: 64
Registered: ‎09-11-2011
0

Re: REPO paid off

yes, he was charged by the IRS.  And paid taxes on the amount I paid.

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Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: REPO paid off

Probably the 1099-C crossed paths with the payment in full. He needs to contact the IRS and show proof it was paid in full (e.g. last statement, CR balance amount, or anything that shows the full balance from the creditor) and include a copy of the payment (e.g. check copy, payoff letter). The IRS will then void out the 1099-C and return the taxes.

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