FORECLOSURE INCOME TAX REMEDY
By: Angel Y. Dayan, EA, ABA, ATA, CPA- (213)-365-1040 taxwork.com

There were more than 37,000 foreclosures in California alone and this number is continuously rising. It is a trend that will continue to occur in the next three (3) years. Unfortunately, the tax law treats a foreclosure as a sale transaction, like repossession, or a voluntary return (deed in lieu) of the property to the mortgage lender. And if you were personally liable on the mortgage debt, you may also generally realize a taxable income on the forgiven debt or cancelled mortgage. If your mortgaged property is foreclosed or repossessed, and the bank or other lender reacquires it, you will receive a Form-1099A, which indicates the foreclosure bid price, the amount of your debt, and whether you were personally liable. The IRS will check if you have reported income from your foreclosure, etc. and tax you. And when the lender cancels your debt---it is taxable, (with certain exceptions) you may receive a Form-1099C, on which the information about the foreclosure or repossession will be reflected. Why be taxed twice after an unpleasant foreclosure? Let us help you remedy the taxable events of a foreclosure, repossession, or abandonment and mortgage debt cancellation. Call ANGEL DAYAN OF TAXWORK.COM at (213)-365-1040. We are hiring foreclosure income tax remedy associate consultants.