Still - you own that property and you are responsible for the gain.
Please be aware that the gain would be taxed on federal and state level.
So regardless if the property is foreclosed or not - as the owner - you are still responsible for the gain.
You may ask your attorney to withhold some taxes from proceeds and remit to taxing authorities.Individual federal income
tax debt may be written off under some circumstances within the bankruptcy
If the income
tax debt meets all five of these rules
, then the tax debt is discharged in bankruptcy petitions.
The due date
a tax return
is at least three years ago.
The tax return was filed at least two years ago.
The tax assessment
is at least 240 days old.
The tax return was not fraudulent.
The taxpayer is not guilty of tax evasion.
Let me know if you need any clarification this matter.
Sorry if you expected differently.