Tax Liabilities on Foreclosure

[mjlester123]

What is the name of your state (only U.S. law)? MN

I have an investment property that is in foreclosure. I have a short sale offer that would give me $70k of tax exposure. I have yet to file for bancruptcy, if I wait and let the house be foreclosed on or take teh short sale, and then file for bancruptcy, which is better from a tax liability standpoint? I have other debts that I need to file with and I have read that it is best to file for bancruptcy after the proeprty is foreclosed on. Any help? Thank you in advance.

[seniorjudge]

Originally Posted by mjlester123

What is the name of your state (only U.S. law)? MN

I have an investment property that is in foreclosure. I have a short sale offer that would give me $70k of tax exposure. I have yet to file for bancruptcy, if I wait and let the house be foreclosed on or take teh short sale, and then file for bancruptcy, which is better from a tax liability standpoint? I have other debts that I need to file with and I have read that it is best to file for bancruptcy after the proeprty is foreclosed on. Any help? Thank you in advance.

http://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/short-sale-investment-property-435956.html

[mjlester123]

I was not asking the same questions. I was asking this time what was the better course of action, either take the short sale tax hit or foreclosure and then should I wait for bancruptcy. I never discussed the implications of bancruptcy in the last one. Any advice on bancruptcy?