Solved: Proceeds from Foreclosure
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ElEme
Level 1

Proceeds from Foreclosure

I had excess proceeds from a foreclosure.  Do I report it as income?  How is it taxed?

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Accepted Solutions
JotikaT2
Employee Tax Expert

Proceeds from Foreclosure

It depends.

 

The treatment would be dependent upon whether this was for a principle residence or a rental/investment property.

 

Please see the following link specifically for information as it relates to foreclosures.

Foreclosure treatment for taxes

 

Please see the following link for more details as to whether it would be taxable to you based upon the type of debt that was cancelled.

Tax treatment of debt cancellation

Form 1099-A treatment for taxes

 

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1 Reply
JotikaT2
Employee Tax Expert

Proceeds from Foreclosure

It depends.

 

The treatment would be dependent upon whether this was for a principle residence or a rental/investment property.

 

Please see the following link specifically for information as it relates to foreclosures.

Foreclosure treatment for taxes

 

Please see the following link for more details as to whether it would be taxable to you based upon the type of debt that was cancelled.

Tax treatment of debt cancellation

Form 1099-A treatment for taxes

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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