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Investment Prop and a BK?

Posted on: 10th May, 2011 03:08 pm
Hello, I am new and I don't know where to create my account.

I have two questions. 1) my primary home was foreclosed last and I received a 1099C with $450K in one of the boxes. I read somethwere that a law was passed in 2007 that I don't need to pay taxes on it? Can you site a reference on this issue? 2) I have more than $50K credit card debt and I am bout to file BK I was told that have to put my other SFH to an LLC before filing BK. This single family home is a rental but currently vacant. Please advise. Thank you

[size=9:8a0776e8cf][color=Red:8a0776e8cf][Email address deleted as per forum rules. Thanks.][/color:8a0776e8cf][/size:8a0776e8cf]
Hi sfhavail,

Depending upon the Mortgage Debt Relief Act, you won't be liable for paying the taxes on the forgiven debt. You can contact a CPA and he will help you in knowing the Act. Transferring property to LLC just before bankruptcy filing may not be considered as legal. You should speak to a bankruptcy attorney in this regard and clarify the whole matter.

Thanks
Posted on: 10th May, 2011 10:15 pm
Thank you for your prompt reply! I will definitely talk to a lawyer. Do you have any referral in Sacramento County?
Posted on: 10th May, 2011 11:33 pm
Hi ablackwell!

Welcome to forums!

It will be better if you could contact the Bar Association of your state in order to find a lawyer for yourself. You can even contact the local lawyers of your county for the same.

Feel free to ask if you've further queries.

Sussane
Posted on: 11th May, 2011 08:18 pm
It was me about... I just forgot to login!
Posted on: 11th May, 2011 08:19 pm
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