JIll, on September 16, 2010 at 10:15 am Said:
I had purchased a Freddie Mac bond about 3 years ago. it was great it was paying 6 1/4 percent interest.
60% of the bond was called in 2009 and 40% in 2010.
When I got my 1099 this year it stated I had made 27 thousand dolllars of interest. My accountant and I went crazy trying to dispute this. My normal yearly interest was about 5,400. In researching this for six months we have been given what I guess i s the correct answer. The REMIC on this bond makes me liable for the parent companies tax. So I now have to pay on 27 thousand dollars worth of phantom interest that I have never recieved nor will I ever recieve it.
I have been told by my tax advisor that I can take a loss of 3 thousand dollars per year until the 27 thousand is paid back to me. This saves me about 5 hundred dollas a year in taxes. whoopi!!!
I am still in shock, I owe 4 thousand in income tax this year and have been pushed up to the 25% tax bracket instead of 15. I feel like I have been completely ripped off and I legally do not have any recourse….because it is legal. I say if anyone says Freddie Mac or fannie Mae to you, then you should Run. You should run fast and run hard. This has been the biggest night mare I have ever experienced with investing. I hate mortgage bonds
The degree of how corrupt this bankster stuff is gets more mind blowing the more I read. This is just one small way for more people to be looted. I have no idea how many people invest in mortgage bonds but I’ll bet this is a nasty surprise for lots of them.
BTW, I was looking up mortgage backed securities to see when they were spawned and the interesting thing was that they didn’t come from banks, they came from government.