Tag Archive for Form 1099C

The Ins And Outs of Foreclosure (Part 4)

Tax Consequences of Foreclosures –

When a foreclosure or repossession is made there are tax consequences in addition to the legal and monetary issues. When a piece of collateral is seized in place of a debt, it is deemed a sale of the property and must be reported like any other sale.

For recourse loans, the amount of the realized gain is:

the lesser of the debt immediately before the seizure reduced by any amount of the loan the debtor remains liable for after the seizure

Or Read more

Meet Tax Experts At TaxConnections...