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I have been paying penalties and interest now years. It

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I have been paying penalties...
I have been paying penalties and interest now for 5 years. It stems from capitol gains on several investment properties I owned. I refinanced to purchase additional properties and when property values fell and my adjustable rates rose, I had to short sell the properties. Well my accountant said I had to pay capital gains taxes on these properties I lost. Also, shortly afterwords I filled chapter 7. I just never thought I should have to pay taxes on property I lost.
Submitted: 2 years ago.Category: Tax
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Answered in 7 hours by:
3/15/2016
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 2 years ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,061
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from just answer. I'm PDtax. I can assist.

It is possible that you do owe the taxes. The refinancing of the properties and subsequent short sales means you 'sold' for the amount of the refinanced debt. There could be taxes to pay.

However, your bankruptcy filing intrigues me. You might be able to claim that the gains should not be taxed, due to insolvency.

A review of your tax situation, returns filed and the bankruptcy petition might allow for relief. Go to another tax pro for a review. Well worth the fee they might charge for an hour of their time. Ask your bankruptcy attorney for a referral to a tax pro if needed.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

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