Foreclosures Help Information

Posts Tagged ‘my house is being foreclosed what can i do’

My House Is Being Foreclosed

Question: How to file taxes with a foreclosed house?

I live in Arizona, which is considered a non-recourse state. My house was sold at auction back in July of 2009. I plan on using turbotax online. Do I need to wait for a 1099C? Just want to make sure I'm covered.

Answer: I live in California. which is a trust deed state. The house was probably sold at the steps of the court house. If you receive a 1099C there is a cancellation of debt. The formula for this
Foreclosed Value
+ 1099C (liabilities give up)
- adjusted basis (purchase + capital improvements
__________________
= Gain will be ordinary if the amount is less than or equal to 1099C amount, This means that you will have to pay at you personal tax rate. You can avoid this if you filed Bankruptcy on the note and
then you can complete IRS form 928

If you get 1099A,, the formula will be:
1099A amount
- adjusted basis
__________________
= capital gain
- ( exclusion 250k or 500k)
this formula works if the house was your Primary Principal Residence But you cannot take a loss

Lakewood Ranch Florida Foreclosed Partially Constructed Hockey Arena Fail

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