tax deductions after deed in lieu of forclosure - Posted by Lanie

Posted by Diane (TX) on June 10, 2003 at 20:30:10:

If this was your personal residence, then you can’t deduct any loss. Losses from a sale or “exchange” - which includes a deed in lieu of foreclosure - of a personal residence are not deductible. If you had rented out this house, you may be able to take a loss.

tax deductions after deed in lieu of forclosure - Posted by Lanie

Posted by Lanie on June 09, 2003 at 05:48:04:

I have a question. Can you take any deductions when you sign your home back over to your mortgage company? It’s a long story, but in the end I ended up moving overseas and decided to invest in offshore accounts rather than go on pouring $1,000.00 a month into and home a 40 acres that I couldn’t sell. I asked the mortgage company if I couldn’t just deed it back to them and they suggested this alternative. I know I lost a big down payment and five years of payments, but for many reasons I decided to let it go. By the time they actually sent me the deed, it was in lieu of forclosure. Are there any deductions that I can take?

Thank you,

Lanie