taxes including foreclosure and bankruptcy

Re: taxes including foreclosure and bankruptcy

• smerka member

  

  January 2014

  Some. What do you need to know?

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• vpine member

  

  January 2014

  I had bankruptcy a few yrs ago but that didn't affect my taxes. What is your exact question?
  

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• Sisugal member

  

  January 2014

  It will depend on the type of bankruptcy and when it occurred.
  Foreclosure has a timeline where no taxes are incurred, but it was ended or will end soon so the date when occurred makes a difference.
  

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• mrskimm09 member

  

  January 2014

  so we had a bad year and we filed bankruptcy early in the year (don't know the exact month off hand) and we just went through a foreclosure. the house was auctioned in july and was bought back from the bank. we moved at the end of august in with my DH parents and have been there ever since. I don't know how filing taxes works.

  
  

  Will we owe? Will we get money back? 

  M/MC on 6/2010

  DS: 12/19/2011

  
  

  
  

  
  

  
  

  
  

  
  

  
  
  

  
  

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• hoffse member

  

  January 2014

  Honestly?  I don't know that anybody on this board is qualified to answer that question, especially because there is a LOT more that goes into taxes than bankruptcy and foreclosures.  And given that you are only 3 months from Tax Day, it's not like you're going to have a huge amount of time to save if you owe.

  
  

  I have a suggestion: get a good version of TurboTax, install it on your computer, and start answering the questions NOW.  It's a very very good program, and you will get a sense of whether you will owe or not before you have to file.  Also... I'm not sure how you don't know when you filed for bankruptcy, but I would look back at the court filings and see if you can't figure it out.  Even if it doesn't end up affecting your taxes, these are things you should keep track of in life.

  

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• vlagrl29 member

  

  January 2014

  I would talk to a CPA if you have one.  I honestly don't know the answer.

  
  

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• smerka member

  

  January 2014

  Since this is a complicated year for you, I would suggest seeing a professional. Most likely you won't owe taxes on the money forgiven in the bankruptcy or the foreclosure, but you will need to file some different forms than just a 1040. You will probably get some forms (1099-c) that you need to take with you to a tax appt along with the paperwork on the foreclosure (how much was the mortgage, FMV, etc) and the backruptcy.

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• mrskimm09 member

  

  January 2014

  thanks!!

  M/MC on 6/2010

  DS: 12/19/2011

  
  

  
  

  
  

  
  

  
  

  
  

  
  
  

  
  

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• JessH1474 member

  

  January 2014

  Alot of this depends on the chapter of bankruptcy you filed.  I am a paralegal for a bankruptcy attorney in Florida.  You've got two issues here really, one being whether you will receive a 1099 for the deficiency balance from your foreclosure and whether or not you will have to turn over any of your tax refund to the bankruptcy trustee.

  1) If you receive a 1099 from the mortgage company, you can include IRS Form 982 with your tax return which will show that the debt you received the 1099 for was discharged in a bankruptcy and therefore will not pay taxes on the deficiency (again assuming you filed a Chapter 7)

  2) A bankruptcy trustee has the right to take a portion of your tax refund depending on when you filed your bankruptcy.  Alot of this will depend on whether you had any exemptions for this potential refund or not.  If you used an attorney, they would be able to tell you whether you have any exemptions to protect the refund or not. 

  Hope that helps.

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• mrskimm09 member

  

  January 2014

  @jessH1474 We did file a chapter 7. 

  
  

  Thanks for the help. 

  M/MC on 6/2010

  DS: 12/19/2011

  
  

  
  

  
  

  
  

  
  

  
  

  
  
  

  
  

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