That's an interesting question. I don't think I can answer it based on the information you provided. Did you rent the property out during the bankruptcy? If so, did you report the income? What did you report the $20K incentive as on your taxes? Did the property have equity that you exempted at the time of the bankruptcy? Was there a clause in your note/mortgage stating that the rents belong to the bank? These are all variables that could make a difference in the outcome. You should consult a knowledgeable bankruptcy attorney first, who may need to collaborate with a tax attorney on your matter. Sorry I could not provide a quick answer.
Ksenia V. Proskurchenko, Esq.
President and Managing Attorney
PROSKURCHENKO LAW GROUP, LLC
570 North Broad Street, Suite 13
Elizabeth, New Jersey 07208
Main: (973) 321-3040
Fax: (908) 933-0953
THIS ANSWER IS INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY. IT SHALL NOT BE CONSTRUED AS LEGAL ADVICE NOR BE DEEMED TO CREATE AN ATTORNEY-CLIENT RELATIONSHIP. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.Ask a similar question
You have at least one big problem (and possibly several) all stemming from the fact that you surrendered your home in bankruptcy, and then went on to use that same property as an income-producing property (with a $20,000 bonus to boot). You receiving a 1099-C means that the IRS already knows. I strongly suggest that you find a great tax attorney yesterday. Good luck!
As of the time I provided my answer to your question(s) today, I am NOT your lawyer and you are NOT my client. Therefore, there is NO ATTORNEY-CLIENT RELATIONSHIP between us. Accordingly, you should NOT construe my response to your question(s) as legal advice. Rather, you should look upon my answer as a "starting point" for you begin discussions with a lawyer of your choosing. I am always receptive to new clients, but there are many, many lawyers who will meet with you and give you expert, personal legal advice. My answers in this forum are NOT expert legal advice, but merely general commentary after reading the very, very brief facts which you provided to this forum. I truly wish you all the best!Ask a similar question
Take the 1099C to your tax preparer ASAP.
Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.Ask a similar question