Surprise Tax Hits With Foreclosures
This was interesting and something I did not know.
“While canceled debt originally used to buy or build a house can be exempted from tax filings, debt used for other purposes cannot. “I just thought I’d get out from under the house and that would be that,” she says.”
Make sure to always consult a CPA. Another thing that is happening in South Florida right now is that they are going after people who claimed their property as a Homestead property, meaning they occupy the property as their primary residence, but it really wasn’t. State and local governments are looking for ways to make up for lost revenue so you better be careful.