If we go through foreclosure on our home, are we liable for taxes on the difference between its worth and the mortgage? 1 Answers as of March 30, 2011
We are at the brink of beginning the foreclosure process. We are wondering what our tax liability will be (if anything). The difference between what we owe and what it's probably worth is around $15 - $25, 000.
Meyer & Yee, LLP
| Kent W. Meyer
You should not have to pay any tax. There is a special tax provision that will protect you.
Answer Applies to: California
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