Part two of this Tax Help!!!?

I did not owe taxes prior to filing bankruptcy. the 30,000 is a result of filing on my house. I did not sell the house, the lenders got it back.


Answer:
If the IRS is contacting you about an unpaid tax, obviously the tax is from the house.

Again; contact the bankruptcy atty; or talk to the IRS about it.
If a house is returned to a lender, usually, they sell it.
They sell it to pay off the original loan made to the person(s)
that it was reposessed from.
If not enough money to cover the original loan is made, the
person(s) that the house was reposessed from are still responsible for the rest of the money owed.
If enough money was made to cover the original loan,
the person the house was repossesed from does not owe the lender anything. However, they do owe the IRS capital gains tax on the pproceeds from the sale of the home. This is because the money is used to pay off a debt that person had
and is considered a capital gain. For $30,000 in tax, the house had to sell for over $150,000.
If more money was made than the original loan was for plus interest and fees, then that money in a bankruptcy proceeding is turned over to the trustee. The trustee uses it
to pay off non dischargeable debt first, then priority debt.
You would still have to pay tax because the money was used for your benefit (ie paying debt.)
Taxes are not discharged in bankruptcy.