Replies to post #561164 on Mr Cooper Group Inc (COOP)

[dennyduper]

That is correct and it would not be taxed at 28%.

[jerrylev]

If any money comes back to escrow:

- KCC and the trust will file the 1099 with the IRS even before the money is in your hands. You can ignore paying tax if you want to.

- The money will be filed as dividends and not capital gain, which means it is a higher tax rate and you cannot claim the cost basis.

This is a FACT and it had happened to PIERS which is no different from escrow, albeit higher in the waterfall.

Good luck to you to argue with the IRS and the trust / KCC.