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Can expenses preparing a house for sale be deducted if foreclosure occurs?
Wiki User
∙ 11y ago
Deducted from what? If a house is sold at foreclosure, expenses related to preparing the house for a normal sale are not relevant. Generally, expenses to prepare a house for a voluntary sale are not recovered in the sale, except for a few markets where demand for houses exceeds the supply, and even then the seller is better off just cleaning up cluttered rooms and making coffee or baking something chocolate while showing the house.
If, by some chance, your house sells at auction for more than you owe and the fees for the foreclosure, it is unlikely any of the expenses would qualify as increasing the basis (how much you paid for the house), thus lowering your taxable gain.
Wiki User
∙ 11y ago
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How does foreclosure work?
Foreclosure occurs when a person is unable to make payments on a property. The bank, which owns the rights to your property, can choose to overtake the property and kick you out.
What is the difference between a sheriff sale and a foreclosure?
Generally the term foreclosure is used at the start of the process. The foreclosure occurs when a person who does not make payments is kicked out of the house. Then the property is fore closed. In some places the bank can sell foreclosed properties. In other places, it goes on the block for a sheriff's sale.
What can cause foreclosure?
The foreclosure process allows a lender to take back ownership of a property from a borrower. Foreclosure occurs when the borrower is no longer making the mortgage loan payments on time and in full. There are other factors that may cause a family to suffer from one of the many life changing events, such as:Divorce is a life changing issue. When there is a split in a household, this can cause people to lose their home in foreclosure. Divorce is definitely a reality of our society today.Unexpected illnesses lead to a excess of uninvited bills. Many people can't afford these expenses or do not have the insurance coverage to save them. Nobody plans to foreclose on their home, just like they do not expect to pay thousands of dollars in hospital bills.
How do foreclosures work?
A foreclosure occurs when a homeowner defaults on their mortgage payments, and the bank sells the house in order to get it money. The homeowner has the right to redeem the house before the sale, in most states.
How soon after foreclosure can you get another home loan?
Simply, as soon as someone will agree to give it to you. With todays heightened credit requirements, a recent foreclosure is a major turnoff. That it normally occurs along with additional and continuing credit payment problems, makes it worse. You would likely need a substantial downpayment at least, and expect to pay a high interest rate. And of course, the more verifyable and steady income you have, the better. But how long and how much the previous foreclosure will effect you is each lenders decision. Some, will never grant you a loan again.
What is dollar profit?
Whole dollar profit is the amount of profit that has been rounded off to the nearest dollar. A profit is any type of financial gain that occurs after expenses have been deducted from the amount earned.
What is whole dollar profit?
Whole dollar profit is the amount of profit that has been rounded off to the nearest dollar. A profit is any type of financial gain that occurs after expenses have been deducted from the amount earned.
How Foreclosure works?
Foreclosure occurs when a person is unable to make payments on a property. The bank, which owns the rights to your property, can choose to overtake the property and kick you out.
What occurs when expenses are greater than revenue?
loss
What occurs when revenue is greater than expenses?
profit
What step in cocoa bean production occurs first?
Preparing the ground and soil.
How does foreclosure work?
Foreclosure occurs when a person is unable to make payments on a property. The bank, which owns the rights to your property, can choose to overtake the property and kick you out.
Is it true that a loss occurs when your revenue exceeds your expenses?
False, revenue is gain
What is the difference between a sheriff sale and a foreclosure?
Generally the term foreclosure is used at the start of the process. The foreclosure occurs when a person who does not make payments is kicked out of the house. Then the property is fore closed. In some places the bank can sell foreclosed properties. In other places, it goes on the block for a sheriff's sale.
What can cause foreclosure?
The foreclosure process allows a lender to take back ownership of a property from a borrower. Foreclosure occurs when the borrower is no longer making the mortgage loan payments on time and in full. There are other factors that may cause a family to suffer from one of the many life changing events, such as:Divorce is a life changing issue. When there is a split in a household, this can cause people to lose their home in foreclosure. Divorce is definitely a reality of our society today.Unexpected illnesses lead to a excess of uninvited bills. Many people can't afford these expenses or do not have the insurance coverage to save them. Nobody plans to foreclose on their home, just like they do not expect to pay thousands of dollars in hospital bills.
What occurs when expenses exceed revenues for a given accounting period?
Retained earnings are decreased.
Does net loss occurs when expenses are less than revenue?
Net Income : When Revenue is greater than Expenses. Net loss : When Expenses are greater than Revenue. References : Basic Accounting (111) Book .
