Maryville06.doc 109:43 [hard to hear/assumed words or my comments in brackets]
[ADVANCED]
The OID we went over pretty well yesterday right? [Not in my opinion]
Goldman Sachs is where the monetization takes place
Im gonna assume you've monetized my signature 20 times and will take your silence as agreement.
Mortgage Redemption Process
Lesson One
- The purpose of Lesson One is to provide information that will enable a person to discharge the outstanding mortgage debt on his/her primary resident.
- Before you start Lesson One we strongly suggested you read the following background information.
List references:
The following is a list of IRS forms that are utilized in this Mortgage Redemption Process.
1099-A and 10099-C
2009 IRS Instruction for forms 1099-A and 1099-Ccan be found at
1099-A: Acquisition or Abandonment of Secured Property: Abandonment occurs when the objective fasts and circumstances indicate that the borrower intended to and has permanently discarded the property from use.
Note: There are Instructions for Borrower and Instructions for Lender on this IRS from.
.
Purpose of this from in the Mortgage Redemption Process: First 1099 A, we as borrower, bank as lender. Box 5 No.
Second 1099 A who is always the lender? We are. Bank is borrower. Box 5, YES.
1099-C: Cancellation of Debt:
Note: There are Instructions for Creditor and Instructions for Debtor on this IRS from.
Purpose of this from in the Mortgage Redemption Process:
1099-B: Precedes from Broker and Barter Exchange Transactions:
Note: There are Instructions for Recipient and Instructions for Payer on this IRS from.
Brokers and barter exchanges must report proceeds from transactions to you and the IRS on Form 1009-B. Reporting is also required when your broker knows or has reason to know that a corporation in which you own stock has had a change in control or a substantial change in capital structure. (A barter of your autograph, the bank is the payer and you're the recipient of your own credit.)
Purpose of this IRS from in the Mortgage redemption process:
1099-INT and 1099-OID
2009 IRS Instruction for forms 1099-INT and 1099-OIDAT
1099-INT: Interest Income:
Note: There are Instruction for Payers and Instructions for Recipient. IRS Form 1099-INT; must be filed with
IRS Form 1096“Annual Summary and Transmittal of U.S. Information Returns” used this form to transmit paper Forms 1099, 1098, 3921, 5498, and W-2G to the Internal Revenue Service.
Purpose of this IRS form in the Mortgage Redemption Process: 1099 INT example: If the $600,000 face value amount of loan, bank payer, you recipient. The whole bill is interest. There shouldn't have been a bill to begin with. Fed income tax withheld; $600,000.
1099 DIV: Dividends and Distributions:
Note: There are Instruction for Payers and Instructions for Recipient
Purpose of this IRS from in the Mortgage Redemption Process: Reports all the monetization of your signature. That's a dividend to you. Did they report it? No. Did they pay you? No. They withheld it from you.
1099 OID: Original Issue Discount: Original Issue discount (OID) is the obligation’s stated redemption price at maturity over its issue price (acquisition) price for a stripped bond or coupon. OID obligation, generally you must include an amount of OID in your gross income each year you hold the obligation.
Note: There are Instruction for Payers and Instructions for Recipient:
Purpose of this IRS from in the Mortgage Redemption Process
The following forms must be submitted to properly set-up you’re Treasury Direct Account. I do not know if this is necessary. IS IT?
I am not sure about the following forms; Patrick listed them under “file public debt settlement”
IRS FormW-8BEN: Certification of Foreign Status of Beneficial Owner for United States Tax Withholding (for both real and straw man)
IRS From W-8IMY: Certification of Foreign Status of Beneficial Owner for United States Tax Withholding (for both real and straw man)
IRS 1001: Ownership, Exemption or Reduced Rate Certificate
IRS Form 5396E: Direct Deposit Sign-UP Form
1099 OID, 30 year amortized rate [amount] of the loan if you went the whole term of the loan. When the loan is closed escrow, the mortgage company and the bank could go to the Fed window and get the total amount of a 30 year amortized rate on that loan in 72 hours and they did it for 8 years. (why the 8 years?) Its been paid 3 times right away.
On the 1099 OID the difference between the face value amount of the loan [$600,000.] and the 30 year amortized rate; $1.8 million, roughly 3 times the face value of the loan. Take the face value of the loan times 3 minus the face value and that would go in box one; 1.2 million dollars and 1.2 million dollars in box 4.
In the description box you're going to have sections that pertain to the transaction as you being the source sponsor and lender of the credit. 301.7701-4c [investment trust code] and 26 CFR 1.1275-3 Should be placed in the description box.
(why not put those in the boxes. Or some title 18's as warnings.) What is meant by this comment?
Just for the safety and security of your own process. Don't just write those numbers down on your OID its not going to be good.(why?) You find your own separate specific codes and write them down and you put those numbers on each individual (form?) yourself. That way no one is saying; oh anybody with a 4c on here, flag them they were at some kind of seminar.
If you don't know what investment trust code means you don't know squat about your OID?
All these codes are in the 1ST WHFIT 293 pages. we've done the first 10 or 15 [codes].
Find your own personal codes and don't put 'pay to the us treasury'. (Is that somewhere on one of the 1099’s form?)
Use 26 CFR 1.1275-1h, they see it, they know the codes and it gets processed. Then why would we just use that code to substantiate our filings?
You have to be a 4c, if you're a 4b or 4a you wont have a whfit. 24:05
1099 DIV based on the transaction that happened from the bank that loaned you the so-called money.
qualified dividends box 1b. Why is it qualified? Because we're standing in the status as a fungible agricultural commodity producing in the widely held fixed investment trust. That number right there would be 9 times the face value of the $600,000. which is 5.4 million.
If you are smart enough to use qualified dividends that's a definite advantage cause you're telling them right then and there that you know you're qualified.
In box number 4, federal income tax, would be the same number; 5.4 million dollars.
Notice there is no description box, so if you were to attach an affidavit of negative averment to this letting them know that there's no evidence that exists that the bank did not loan out 9 times the amount of that money. Or you wouldn't have to do an affidavit. Let them go figure it out. But what happens is when the bank loans out that money you don't even know about it, they're putting the 1099 A in there for the abandonment of your credit. If you at close of escrow fail to ask for a receipt, now remember, everywhere we go in this country they're trying to shove a receipt down your throat any time you do a transaction in tender federal reserve note dollars. The biggest transaction in your life you don't get a receipt for? You get a HUD one statement? When did HUD have anything to do with it. well that's under the federal housing authority. 27:00
If you were going to ask for a receipt from the bank it would have to come from the Chief Financial Officer of the bank to evidence the fact that; Wow, they loaned me some of their money which the bank CFO can never do because they can't prove they loaned you anything. When you look at a mortgage, an adjustable rate note or promissory note [ ], it says up in box #1; for a loan I have received. I did receive it? Well, when am I gonna know about it? When he's closed escrow. The whole thing's a scam from the ground up. When you look at the deed of trust, in the deed of trust states, it says in there; the owner is lawfully siesed in the property. Free and clear. But they get you to sign an appointment, a security agreement and you give them power of attorney. So what happens at close of escrow? You sign the escrow documents, you fail to ask for a receipt, you have abandoned your credit. This country's based upon full faith and credit. If I have no credit I have no faith. If I have no faith and I reflect it in a 1040 filing that comes along after the transaction has happened in the tax year and I do what, as a good little debtor, I take the mortgage interest deduction instead of what I showed you yesterday on the 498 form where it said if you are required to file a return the IRS may impose a sanction of penalty if you overstate the mortgage interest deductions, fail to report these points or fail to report the refund of interest on your return. So when you have all this there, all these forms in place, is there any way that a corporation can overcome this? No. I actually believe in my heart there is no way they can overcome it.
The bank is the payer and you're the recipient because they did all these things and they got it for you but they withheld everything from you. So this doesn't even need its own debt instrument when you're using it this way. You're just noting that they actually got that from you and didn't give you any money for it. Yes they paid me 9 times a hundred thousand dollars and how much did they withhold as an income tax from me? All of that, cause I didn't receive it. 29:55
30:21 The application I was using up there was for a 1040 filing. If you're going to go back to a week before the loan was consummated on the application that you signed to access the credit..
You're talking about a reconveyance? I can answer that. These are all the things you're doing just to report the goings on in the transactions. Now you want to reconvey the title to the owner, something like that? that's like a separate.., that's good, you should, and that's what you'd want to follow up after you've done this. That will be based on this. After you've done all the filing and yes you could do all the filings at the same time and [ ] deed of reconveyance or quit claim deed, whatever kind of deed you're using. Do that afterwards and make sure the other party has already filed. 31:11
Tom; Well underneath the real estate s... procedures act as well as the truth in lending act and the fair debt collection practices act, you have 3 years for a right of rescission and the right to cancel. We're not going to go into this mortgage stuff at this seminar. But the application of the forms is appropriate in this venue. And that's why the WHFIT is so important to understand because once you have this down, you can operate in this side over here and you can operate in this side over here [public and private?]. And if need be you can initiate the total audit of the account and then once that comes out if they don't pay you, you can take them into a forced bankruptcy and trustees love it because they get 10%. 32:00
36:00 safe harbor rules for determining the amount of an item to be reported on a 1099 or tax information statement respective of trust interest holder in non mortgage whfit... [reads too fast] 1.671-5
41: what to do if you've made a mistake. multiple filings. if you got a FF, just resend the form.
47:55 we should stop saying do an accepted for value cause that has a stigma. Banker's acceptance is what it should be. You're making an order.