MORTAGE FOR TITLE AND TAXES DUEON SALE
We are auditors and accountant's paid to verify the accuracy and integrity of the numbers used in your foreclosure . What we are not paid to do is think on your behalf. You may find this statement confusing but think for a moment. According to the IRS - Generally everyone will receive Form 1099-A post foreclosure. You will need to report it on Schedule D of your tax return that year. Form D is for reporting the purchase and sale of equity meaning stock. The majority of our cleints never owned stock or at least never purchased and sold any shares while in foreclosure. None the less the lender issues Form 1099-A for you to report to the IRS meaning any profits [capital gain] or loss from the voluntary sale of your property. Wait this is foreclosure ? You see the profits from your homes sale at public auction are indeed treated as 100 percent capital gains reported as ordinary in year of disposition. So where is the money or proceeds from sale paid to you ? It was paid to seller a nominee for you to repurchase your home from the lenders creditor . Ouch but that's okay! Now its time to pay the tax and take back title unless you elect to abandon it !
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