Lost Your Home? You may owe the IRS

If you thought a foreclosure ended the financial miseries associated with your former home, think again. You soon could be hearing from the IRS about taxes due in connection with the residence you no longer own.

"You can walk away from the big house payment, but not from the potential tax implications," says John W. Roth, senior tax analyst at CCH in Riverwoods, Ill. "And if you couldn't afford the mortgage, you probably can't afford the taxes."

As the lending crisis continues to shake out, more homeowners, particularly those who used creative mortgages to buy their houses, could be in this predicament. Even longtime homeowners who refinanced their properties based on increased value when the real-estate market was hot could find themselves in tax trouble if they lose their properties to the bank.

Read more of this atricle at http://realestate.msn.com/selling/Article_bankrate.aspx?cp-documentid=5427263

HOLLY KAY
BROKER ASSOCIATE
SUNSET REAL ESTATE AND MORTGAGE
951-757-9632