My mom passed away in September 2011. She owned a condo in N Palm Beach Florida with a reverse mortgage. The condo is worth $93,000 and there is $193,000 borrowed against it, resulting in a $100,000 debt forgiveness. The condo will be taken over by the bank via deed in lieu of foreclosure. The $100,000 was held in a joint account that passed solely to me by survivorship. Is the $100,000 counted as taxable income, and are there tax ramifications for the estate due to the deed in lieu?

January 6th, 2024

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