What is the name of your state? Missouri
Hoping for some help! We have filed bk, 5 investment properties that will foreclose. I understand (I think) that under BK law (1099a/908 Pub) that for 2007 income tax return the deficiency on the properties can not be included as taxable income. Right? o.k... We took a $72,000 loss on these properties this year. Our accountant said that we can only deduct 25,000 for 2006 since we still own. For 2007 he is checking to see if we are able to deduct the remaining 47,000. Does anyone know? I would assume there would be some catch in the law that we could not profit from this deduction since it was tied to BK. Does anyone know the answer to this. I am relieved to think that they can't charge deficiency as income but was wondering about the deductions. I know it seems a long way off but sure would make me rest easier! Thanks so much!
Moving On
Hoping for some help! We have filed bk, 5 investment properties that will foreclose. I understand (I think) that under BK law (1099a/908 Pub) that for 2007 income tax return the deficiency on the properties can not be included as taxable income. Right? o.k... We took a $72,000 loss on these properties this year. Our accountant said that we can only deduct 25,000 for 2006 since we still own. For 2007 he is checking to see if we are able to deduct the remaining 47,000. Does anyone know? I would assume there would be some catch in the law that we could not profit from this deduction since it was tied to BK. Does anyone know the answer to this. I am relieved to think that they can't charge deficiency as income but was wondering about the deductions. I know it seems a long way off but sure would make me rest easier! Thanks so much!
Moving On