[quote author="Axsuul" date=1230566834]We tried to get the bank to let us to stay but they were adamant on booting us out. I can understand the landlord's frustration with the house--I believe he purchased the house at $700k but sold it for only $350k. <strong>Anyways, anyone in a similar situation can shed light on how much they were taxed?</strong> Thanks</blockquote>
Awgee knows more about taxes than most people I know, and he should. He also answered you question here...
[quote author="awgee" date=1230514131][quote author="Axsuul" date=1230479975]The house we are leasing was recently foreclosed due to landlord's failure to pay mortgage.. therefore, it was put up for auction in which IndyMac purchased it. They confronted us with a cash for keys deal and we offered to move out for $7,000. I filled out a W-9 form from the bank. Since I will be distributing this money with my roommates, how much should I expect to pay on taxes for this? I am full-time a student so naturally I make under $15,000 a year. Thank you for your time.</blockquote>
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It is normal income and will be taxed at your marginal tax rate.</strong></blockquote>
All you need to know is what your tax rate is, and then you can calculate what the taxes are.