I filed Chapter 7 bankruptcy in 2019, but my house was not foreclosed on until 2023, and I recovered excess funds in 2024. I moved out of the house in 2020. I do not have a 1099 form for the excess funds.
2 questions. On what form do I report the excess funds? And being that it was $24,000 will I owe taxes on it?
Thanks!
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Treat the situation as if you sold the home to the bank for the amount of the mortgage plus the excess amount.
Then, you either have a loss or a gain, depending on your cost basis. Losses on personal property are not deductible, while gains are subject to capital gains tax, except that you may be able to exclude some of the gains depending on the timing. See publication 523.
Treat the situation as if you sold the home to the bank for the amount of the mortgage plus the excess amount.
Then, you either have a loss or a gain, depending on your cost basis. Losses on personal property are not deductible, while gains are subject to capital gains tax, except that you may be able to exclude some of the gains depending on the timing. See publication 523.
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