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DJ, Home Seller in Rocklin, CA

What is the tax implications on a California Rental Property with (2) loans and the owner filed bankruptcy and planning to Short Sale the house.?

Asked by DJ, Rocklin, CA Sun Aug 26, 2012

Will there be tax implications on a Rental Property with 2 loans if we filed bankruptcy and this property (both loans) are included in the bankruptcy discharge? We are looking into short sale to expedite getting rid of our name from title. BofA has been dragging their feet so we opted to do short sale but want to know tax implications in our situation.

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You should be asking this of your BK attorney and your taxation accountant.
0 votes Thank Flag Link Tue Aug 28, 2012
As Kylee mentioned, you are asking this question at the wrong forum. You should research it at taxalmanac.org which is meant for cpa and tax professionals. Or simply Google it. Or ask yr cpa if you have one.
0 votes Thank Flag Link Sun Aug 26, 2012
First of all, you should check with your BK attorney, if the BK is not discharged yet. I am not sure title can change hands--that is the property can not be sold--without permission of BK court? I'm not a BK expert, so that's why I say check with your BK attorney.

Also, any tax implications should be checked with your CPA or a tax expert. We are Realtors, and expert at selling property, not advising on tax matters. If you need advice on the short sale, or B of A, I can help, but no one on this forum (who is a Realtor), should be advising you on Bankruptcy,nor tax law or implications.

GOOD LUCK! The answers are out there, probably just a phone call away.
Web Reference: http://www.kyleeroe.com
0 votes Thank Flag Link Sun Aug 26, 2012
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