"Retain me, and
you will talk
only to me."
Losing Your Home in Foreclosure
Experienced Tax Attorney in Irvine, California
Tax Problems After Losing a Home in Foreclosure?
You lost your home in foreclosure. You didn’t think things could get any worse – until you received a bill from the IRS for alleged gains from the foreclosure. It is devastating to learn that your wages are being garnished and bank accounts levied to recover assets for taxes that you shouldn’t have to pay.
Don’t Just Pay the Tax Bill. There is Hope.
You don’t have to cave in and pay the huge tax bill. Tax Litigation Law Office of Scott Kauffman has the answer. For experienced tax help, contact attorney Scott Kauffman. I have nearly 30 years of legal experience and over 20 years of experience devoted exclusively to tax law. I know the laws and the techniques for overcoming IRS problems.
I lost My Home in Foreclosure… Why am I Being Taxed?
When the bank or lending institution foreclosed your home, you were issued a 1099 for the amount remaining on your loan. This form was subsequently submitted to the IRS. The IRS viewed the amount on the 1099 as net gain – which is taxed. However, in most circumstances, you will not have to pay this bill if it is handled correctly.
There is a Simple Solution to Your Devastating Tax Problem!
You can avoid bank levies, wage garnishments and a huge tax bill simply by filing a corrected and appropriate return. Taxes are owed only for net gains from the difference between the amount realized and the original purchase price. The amount still remaining on your loan after losing your home in foreclosure (the amount on the 1099 form) is often treated as the sale price of the property. Typically, the original purchase price is higher than the amount still owed on the loan. Therefore, there are not any gains to report.
If an appropriate return is filed, you will likely receive a significant refund for the amount of assets garnished or levied from bank accounts or wages.
What if There Are Gains to Report? Do I Have to Pay the Taxes?
Even if there were still net gains to report, you may not have to pay the tax bill. The IRS allows some net gains on property that was your home (in which you owned and occupied for two of the last five years). The following net gains are allowed without tax penalties:
- Up to $250,000 net gains for Individuals
- Up to $500,000 net gains for Married Couples
Therefore, you may not owe anything in taxes even if you reported net gains. But you must take care of the problem now to avoid tax penalties.
Contact an Experienced Tax Lawyer: Scott Kauffman
If you have lost your house in foreclosure and now face a significant tax bill for net gains, talk to me immediately. Get the advice you need to avoid paying such an atrocious tax bill. Contact me for advice in Orange County or surrounding areas.