Blog Archives

Exemption from IRS Filing in Bankruptcy

Here is the hard part, to qualify: 1. The corporation must have ceased business operations and must have neither assets nor income for the tax year. 2. The exemption request must be submitted to the local IRS Insolvency office handling

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Posted in Bankruptcy, Foreclosure, IRS Centralized Insolvency, Tax Filing Status, Tax Guidance & Preparation

IRS Notice 2006-83: The Bankruptcy Estate

When an individual files a bankruptcy petition under chapter 7 or 11 of the bankruptcy code a bankruptcy estate is established. The bankruptcy estate is treated as a separate taxable entity. If a trustee is appointed, the trustee is responsible

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Posted in Bankruptcy, Entity Classification, Foreclosure, Tax Guidance & Preparation

How to Report a Foreclosure to the IRS

Business Entity Selection and the Tax Consequences of Converting

A foreclosure on rental property technically involves the sale of the property back to the lender. Form 1099-A Acquisition or Abandonment of Secured Property reports that the lender has repossessed or foreclosed on the property. Box 2 is the amount of the outstanding mortgage debt, and

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Posted in Asset Classification, Capital Gain, Capital Loss, Foreclosure, Passive Activity, Rental Real Estate, Taxable Income

1099-A-Foreclose of house

When a house is foreclosed upon by the bank, the owners typically receive Form 1099-A from the lender showing several pieces of relevant information. The information on Form 1099-A will likely be needed to report the foreclosure properly on your

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Posted in Foreclosure

Mortgage forgiveness not taxable

Congress has extended the tax exclusion for forgiven mortgage debt through 2012. There is a $2 million limit ($1 million for married individuals filing separately) on this tax exclusion, and the loan must have been used to buy or improve

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Posted in Debt, Foreclosure, Mortgage
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