We recently went through a loan modification and now owe $195,000 on a house we

  1. profile image46
    texcanposted 7 years ago

    We recently went through a loan modification and now owe $195,000 on a house we originally...

    financed for $180,000. If we have to offer deed in lieu of loan in the future, does that mean we will be taxed on the additional $15,000?

  2. bethparker profile image83
    bethparkerposted 7 years ago

    I believe the amount you owe taxes on is the difference between what you owe and the value of the property at the time you do the deed in lieu of foreclosure, regardless of the original value.  So if the property's value has dropped since you bought it, you might owe taxes on more than $15,000.  You really should consult with a good accountant on this to be sure.

 
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