Legal Question in Credit and Debt Law in Texas

Foreclosure tax

Can i be charged tax on a hud foreclosure


Asked on 5/04/04, 5:58 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Foreclosure tax

Depends. If they simply write off the debt and issue you a 1099 for the unpaid balance, that's considered income to you and taxable. Or if the sale results in a purchase price well in excess of your obligation (unlikely, but we're talking hypothetically) the capital gain is taxable.

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Answered on 5/04/04, 6:09 pm


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