Business & farm

did you report anything in 2021? general rule for foreclosure

1) if the mortgage is nonrecourse debt, meaning you are not personally liable, the property is deemed sold  (in 2021)   for the amount of the debt

2) if it is recourse debt, meaning you are personally liable, the property is deemed sold for the lesser of the debt canceled or fair market value of the property.

 

so if you reported nothing in 22021 you have a tax issue.

 

in 2023 the property was evidently sold for more than the amount to cover past due taxes, interest, other expenses and the debt.

you need a breakdown because the taxes would be a tax deduction if you itemize, so probably would be the interest.  The gross proceeds would be capital gain income in 2023