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If you have a foreclosure and the bank does not sell the property for the amount owed on the loan are you always taxed on the difference between the sales price and the mortgage balance?
If you have a foreclosure and the bank does not sell the property for the amount owed on the loan are you always taxed on the difference between the sales price and the mortgage balance?
No, if it was addressed in a bankruptcy proceeding or you were technically insolvent at the time of the foreclosure - it is excludable from income. Technically insolvent simply means your liabilities exceeded your assets at the time.
No, if it was addressed in a bankruptcy proceeding or you were technically insolvent at the time of the foreclosure - it is excludable from income. Technically insolvent simply means your liabilities exceeded your assets at the time.
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