Taxes

[Vpage06]

If you still owe taxes, how are those affected in a bankruptcy if at all?

[BxRcvor]

Welcome to the BK forum! It depends on what kind of taxes they are and the state laws where you live. I live in Florida, and I know that things like "real-estate" taxes are not exempt/declarable. You still owe those. Not sure about income taxes (we don't have a State Income tax in FL ..... yet.....) but...

[justbroke]

As BxRcvor wrote, property taxes run with the land and attach to the property. As for federal income tax, the treatment will depend on how old the past-due taxes have become. Some "old" federal taxes are dischargeable under the 3/2/240 rule. In order to file bankruptcy you must file all tax returns that became due before filing.

Since the bankruptcy likely won't discharge any taxes for tax year 2022, 2023, and 2024, those would need to be paid after discharge (typically via a payment arrangement). Anything before that which fits the 3/2/240 rule can be discharged (taxes for year 2021 and earlier). The only issue that could arrives is a federal tax lien (FTL) but that's a different can of worms.