How Does a Bankruptcy Affect You When You File Your Taxes
I have filed for bankruptcy in May 2012 & received discharge in July 2012. I had filed for bankruptcy mainly because I was a co-owner of my mother's house
which overall total owed is $300,000, currently in foreclosure. I had to cutt all ties to her house due to supporting my own family. I'm just concerned about
taxwise, how would this effect me when it's time to file my taxes? Will I still get a 1099 even after filing bankruptcy? Would I still have anything to do with
my mother's house in the future? Please help!
Re: How Does a Bankruptcy Affect You When You File Your Taxes
Even if a bankruptcy results in a write-off, you don't incur tax liability on a discharged debt. If you get a 1099 for a write-off of a discharged debt, file form 982 with your tax return.
If the home is sold in foreclosure, it will no longer be your mother's home. What are you asking about?
Re: How Does a Bankruptcy Affect You When You File Your Taxes
Thank you Mr. Knowitall. I appreciate the reply. This does bring me some relief when tax season comes around. The whole purpose of my mother doing a sudden unexpected short sale one week before auction, is that she's hoping to get something out of it for moving expenses. I doubt it.