Legal Question in Bankruptcy in West Virginia

real property exemption taxable?

Received a check for a real property exemption of 14,900 for a chapter 11. Was wonding if that is considered taxable income. Any help greatly appreciated.


Asked on 7/12/06, 9:51 pm

1 Answer from Attorneys
Thomas Zimmerman Zimmerman Law Office

Re: real property exemption taxable?

The exemption allowed by the United States Bankruptcy Code is the amount of equity that a debtor may retain in real estate free and clear from the claims of the trustee in bankruptcy. The amount is now $25,000 in West Virginia. The trustee is appointed to take over non-exempt property and sell it to pay creditors. Income taxes are paid upon earnings, dividends and interest. There will remain property taxes upon the value payable to the county.

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Answered on 7/13/06, 8:25 am


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