Foreclosure?
Mar 26, 2009 in
United States
Denis B
If you’ve lost your home to foreclosure, is there any tax breaks for the equity lost ? Say your home was worth 225,000 and you owed 190,000 and it was foreclosed on. Can you claim the 35,000 as a loss on your taxes ?
If you’ve lost your home to foreclosure, is there any tax breaks for the equity lost ? Say your home was worth 225,000 and you owed 190,000 and it was foreclosed on. Can you claim the 35,000 as a loss on your taxes ?
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3 comments
sdn90036 on March 29, 2009 at 3:48 am
No, as far as I know there are no tax breaks for any losses you incur as a result of a foreclosure.
Good luck.
Wayne Z on March 29, 2009 at 6:31 pm
No.
The loss is considered a “personal loss” and, as such, not deductible.
Judy on April 1, 2009 at 5:08 pm
No, it’s a personal loss and not deductible. And if some of your debt was forgiven in the foreclosure, you could end up having to pay tax on that amount.