How will bankruptcy affect my taxes? 7 Answers as of May 12, 2011I have a home that's been a rental since Feb 1, 2011 (3 months) that now is vacant and up for rent. I lived in the house for six years prior to renting. If I file for bankruptcy and foreclosure, how will this affect my taxes? Thank you!
Benson Law Firm | David Benson
Generally speaking, discharge of your debts in bankruptcy is not income for tax purposes and should not be stated as income on your tax return. And although most taxes are nondischargeable, some income taxes are indeed subject to discharge under certain circumstances. You should arrange for a free consultation with a qualified bankruptcy attorney in your area to discuss your particular situation.
Answer Applies to: Ohio
Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
All these have no effect on your taxes. You will still have to pay all taxes owing and due depending on your income and whether you are self employed, or are working with a company and have extra income. regardless of bankruptcy, you must pay. Note also that you cannot discharge tax debts, they must be paid.
Answer Applies to: Washington
Robert Peters, P.A. | Robert L. Peters
Effect on taxes is really not the right question. Its what effect does this home have on my bankruptcy. That question depends on the answers to a lot of other questions. Like: is there equity in the property? Do you want to keep the property? Do you own other property?How is the property titled? You need to consult with a qualified bankruptcy attorney so he or she can get a "global" look at your finances and make proper recommendations.
Answer Applies to: Florida
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If a property is being foreclosed a bankruptcy can be filed. There are no tax implications after the bankruptcy. Consult an accountant as to tax consequences if bankruptcy isn't filed and there is a foreclosure.
Answer Applies to: California