Hi, I am in Michigan,
I am about to close on some property that I inherited from my father. My probate lawyer didn't do a title search before the property went into my name and it turns out there were several judgement leins against it from a previous lawyer. I found a buyer and when the title company did a title search these leins came up. I worked out deals with the leinholders to be paid off at the closing. The sale amount is $30,000. After the liens title company and back property taxes are paid I'll be getting about $7000 to $8000. My question is this...
Am I paying income to the IRS for $7000 or $30000?
Also when do I need to pay these?
Mind you, those original liens didn't belong to me they cam with the property.
Thanks for any help.
I am about to close on some property that I inherited from my father. My probate lawyer didn't do a title search before the property went into my name and it turns out there were several judgement leins against it from a previous lawyer. I found a buyer and when the title company did a title search these leins came up. I worked out deals with the leinholders to be paid off at the closing. The sale amount is $30,000. After the liens title company and back property taxes are paid I'll be getting about $7000 to $8000. My question is this...
Am I paying income to the IRS for $7000 or $30000?
Also when do I need to pay these?
Mind you, those original liens didn't belong to me they cam with the property.
Thanks for any help.