How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39043
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I filed bannkruptsy in 2009, included one particular rental

This answer was rated:

I filed bannkruptsy in 2009, included one particular rental property which I am no longer responsible for in the bankruptsy. In 2011, with my cooperation with the bank, the property successfully shortsaled. My question is, can I report the sale of the home on my taxes? By doing this, I would show a loss on the property, ultimatley gaining the tax benefits of deprication recapture, which reduces my tax liability for the year significantly. Is this possible?

If the property was a rental, and the bankruptcy trustee abandoned it back to you at the close of your bankruptcy (which occurs automatically, if the trustee fails to liquidate the property in Chapter 7), then it's your property and you can treat it the same as you would any other property for tax purposes.

Hope this helps.

NOTICE: My goal here is to entertain while educating the public about the law. I hope my answer is useful and informative to you. During our conversation, the website may ask you to rate my answer. If you rate my answer lower than the middle rating, then the website retains your entire payment, and I receive nothing. It is entirely your choice as to how you rate my answer. However, because your payment to me is in the nature of a donation/gift, rather than as compensation for any services rendered, you are entitled to know how your rating affects the final distribution of your donation.

If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!

Customer: replied 4 years ago.
Since I was discharged with the bankruptcy in 2009 and the property did not shortsale until August of 2011 (with my cooperation of course and with me signing off on the deed) would that imply that the trustee abandoned the property? Since I worked alone (with the bank after discharge without the trustee) does it appear that this is the case?
If the trustee had "not" abandoned the property to you, then it would have been sold by the trustee, not by your short sale. So, yes, the implication is that the trustee abandoned the property to you, principally because it had no equity value to the estate.

Hope this helps.
socrateaser and other Bankruptcy Law Specialists are ready to help you