tax foreclosures in ohio
What are the tax ramifications of a rental property foreclosure?
Owned the property for 23 years, bought it for 22, 000 anticipate the sherrif’s sale to be 38,000. Will I pay capital gains tax? Also, I am currently in an active chapter 13 and the bank has indicated that they will NOT seek a deficiency judgement. They will forgive the debt on the loan. Will I pay taxes on this debt forgiven? I am told I will recieve a 1099C and have to report this as earned income on my taxes next year. Can I be taxed both ways?I live in the state of Ohio.
This is not something that you want to tackle on your own as you have multiple issues here. Take it to a professional who has experience with issues like this.
There is or could be:
1) Capital Gains
2) Depreciation Recapture
3) Forgiveness of Debt.
Foreclosure Sheriff Sales-Montgomery County, Ohio
