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1 yr into ch 13 and want to include investment home

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    1 yr into ch 13 and want to include investment home

    We are 1 year into our chapter 13 case. We just made our 12th payment!!! We are still in our primary home and our rental home tenants have stopped paying rent. Our attorney had informed us that we could always add our investment home into our bankruptcy. Here are my questions:
    1. Would we be responsible for taxes on the gain of the house?
    2. Would we be required to pay back depreciation recapture?

    We have used the house as a rental for 10 years. Before that it was a primary residence. We have taken about $2500/yr depreciation ($25,000 in the 10 yrs).

    The house is upside down and it is costing us every month to rent it and the stress of the renters not paying is about to drive me mad. I do not want to let it go into foreclosure though if we will end up with a huge tax bill in a year or two. I would like to just get the fresh start that we wanted from our chapt. 13.

    What advice do you have as far as how to approach this? I cannot find too much info on the depreciation recapture during a chapt. 13. Thanks in advance for the help.

    What does your Ch 13 lawyer have to say about amending your plan now to surrender your investment home?
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go


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