Are There Tax Consequences if Property Forecloses?
Our Lawyers Answer
If your property is foreclosed upon, there are significant tax consequences; one, that can be mitigated by filing a bankruptcy. If you do not file bankruptcy, the debt that you are forgiven or the debt that you don't pay when your property is taxable income to you in the year of the foreclosure. For many people, this is a significant and unresolvable number. If you file bankruptcy within the year that your property is foreclosed upon, there is no taxable obligation. For many people, this can save tens or even hundreds of thousands of dollars in tax liability. Please consult an attorney, if you have a foreclosure, and please do it in the year in which the foreclosure occurs.
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Tate Russack - Senior Counsel
With over 20 years experience as an Attorney, Business Consultant and former US Army Officer.
Mr. Russack expertise includes the fields of Business Insolvency, Bankruptcy, Creditor Rights, State Receivership Law, Litigation and General Counsel services to Business, Government Service Contractors and to Individual Clients in property, family law and general legal mattersand heads the firm's Litigation Practice.
Ms Russack practices as Attorney and General Counsel to Individual Clients, businesses, Government Service Contractors and heads the firm’s Business Counsel Practice.
Cami provides clients with experienced counsel in Bankruptcy, Corporate Contracts, Agreement drafting and formation, Operation and Law, Corporate Governance issues as well as in Real Estate issues including: Sale Contracts, and Leases.