2006-10-25 11:19:52 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You could have income from the foreclosure. It's called discharge from indebetedness (forgiveness of debt). You will probably receive a 1099A, and it's calculated based upon your net worth & how much debt you were forgiven--you will probably need a pro come tax time.
You can deduct on your taxes your regular stuff, the taxes & interest you did pay during the year........sorry the news isn't better.
2006-10-25 14:32:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
No. Any loss on the sale of a home is not deductible. A foreclosure is a forced sale.
10.4 Capital Gains, Losses/Sale of Home: Losses (Homes, Stocks, Other Property)
Is the loss on the sale of your home deductible?
The loss on the sale of a personal residence is a nondeductible personal loss.
2006-10-25 18:39:49 · answer #2 · answered by STEVEN F 7 · 1⤊ 1⤋
Not enough information.
Foreclosure evidently is considered a sale, and may result in capital loss or gain.
Look at this IRS publication. It has the basics, and a listing of other publications to refer to based on your circumstances.
2006-10-25 18:35:50 · answer #3 · answered by seaportma 5 · 1⤊ 2⤋
No. How much debt was written off? That could be income.
2006-10-25 21:09:07 · answer #4 · answered by rockEsquirrel 5 · 1⤊ 0⤋