Posted on: 02nd Feb, 2010 06:57 pm
We had a foreclosure last July and are worried about the repercussion of this when we do our taxes. i have heard that we might have to pay 10% taxes on that home. Anyone know anything about this?
Hi mariamar,
Is the deficient balance resulting from the sale of the property forgiven by the lender? If yes, then the IRS will consider this as your income and you would be liable to pay taxes on that amount. If the dues are not forgiven by the lender, then you'll have to pay them off and you won't be liable for the taxes.
Take care.
Is the deficient balance resulting from the sale of the property forgiven by the lender? If yes, then the IRS will consider this as your income and you would be liable to pay taxes on that amount. If the dues are not forgiven by the lender, then you'll have to pay them off and you won't be liable for the taxes.
Take care.