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June 1, 2019
Question

Do I still file property tax and interest on a bankruptcy?

  • June 1, 2019
  • 1 reply
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I owned a home in 2016 that I filed bankruptcy on in 2016. Do I still file property tax and interest on mortgage? No payments to mortgage have been paid in 2016.

1 reply

Employee
June 1, 2019

To the extent that you made any property tax and mortgage interest payments in 2016, prior to your bankruptcy filing, then yes, you can include those amounts on your personal Form 1040 individual income tax return for 2016.  With respect to any such payments that may have been paid (or were not paid) after your bankruptcy filing, these should not be included on your personal tax return for 2016.

In other words, there is a clear dividing-line, or time-line, "pre" and "post" that should be able to help you separate what is allowable from what is not allowable.

As for your bankruptcy estate, typically your bankruptcy attorney (if you have one) should take care of filing the necessary Form 1041 on your behalf.  Please see the screen-capture image attached to this answer for a blank illustration.

Thank you for asking this important question.