I live in Ohio
I use to own rental property. When I owned the property, I rented to tenants that where on Section 8. I filed bankruptcy in October 2003 and it was discharged in February 2004. Before filing bankruptcy, the mortgage companies had received a court order, ordering Section 8 to send all the tentants rents to the mortgage company. The mortgage companies had started Foreclosure before the dischange. The property was not sold and taken out of my name until June 2004.
Section 8 said they have to send me the 1099 because the property was still in my name when they made payment to the mortgage company. They said the directed me to the IRS rule 88-53.
My questions is: Since the mortgage company received a court order for payments to be sent to them and they was in the process of foreclosure, should I be the one receiving the 1099? I did not receive any checks for the tenants and the mortgage companies had taken over full responsibilty of the properties before I filed bankruptcy. How can I be made to pay taxes on money I never received? And, since I had filed bankruptcy in October 2003 done the bankruptcy law protect me from this?
I use to own rental property. When I owned the property, I rented to tenants that where on Section 8. I filed bankruptcy in October 2003 and it was discharged in February 2004. Before filing bankruptcy, the mortgage companies had received a court order, ordering Section 8 to send all the tentants rents to the mortgage company. The mortgage companies had started Foreclosure before the dischange. The property was not sold and taken out of my name until June 2004.
Section 8 said they have to send me the 1099 because the property was still in my name when they made payment to the mortgage company. They said the directed me to the IRS rule 88-53.
My questions is: Since the mortgage company received a court order for payments to be sent to them and they was in the process of foreclosure, should I be the one receiving the 1099? I did not receive any checks for the tenants and the mortgage companies had taken over full responsibilty of the properties before I filed bankruptcy. How can I be made to pay taxes on money I never received? And, since I had filed bankruptcy in October 2003 done the bankruptcy law protect me from this?