Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Do I owe taxes on my foreclosed property (capital gain)? - I have a primary residence valued at $80,000 and a secondary residence valued at $40,000. The primary residence is my house and the secondary residence is my rental condo. I bought the condo in 2006 for $120,000. I foreclosed on the house on November 10, 2010 and I filed for bankruptcy on November 9, 2010. (My 341 meeting was on December 3, 2010, my debt will be discharged 60 days later). My capital gain is $80,000 from the foreclosure. Since I filed Chapter 7 bankruptcy 1 day before my house foreclosed, does that mean I owe taxes on my capital gain? I live in Arizona and I make roughly $50K / year, if that means anything. Should I get a tax lawyer or should the good people at H & R Block know what to do? -