Keeping Home - When Not Living In It

[cubswin]

I have been renting another property for myself while renting out the house I own. I want to keep the house I own as part of the BK, but cannot afford to move back in it. I want to keep renting it while I go through BK, but I'm told I have to be living in it, so my question is...

- How do they verify that you are actually living in the house? If all my mail is going there including my tax records showing this is my address....why can't I just keep renting it during the process???

Is someone actually going to go knock on the door? No...and what would happen if I got caught? Anybody have any idea on this one???

[LimpDisc]

How long have you been renting out the house? Don't you have to report the rental income on your tax returns?

I just can't imagine trying to do something that could get my BK dismissed for fraud or any other reason.

[cubswin]

I've been renting it for a year. There is no rental income reported on tax returns because I am taking a small loss. I don't report having a rental on my taxes.

The benefit in keeping the house it is actually in a very good area where homes are appreciating. The reason there is a loss is because my ex wife took a second out on it that I also got the responsibility of paying back when I got the house. I want to keep it because in five years, I will be able to pull around 50K out of it. Right now, I have about 15K in profit if I were to sell (although with a realtor this would bring me back to breakeven). Does this make sense as to why I would want to keep it. Also, since it's a marital home and I have my daughter, I don't want to move back in due to keeping her emotional devlpmt steady...no reason to put that back on her when we have all moved past this and started new lives.

So...anyone know how they would check/find out that I wasn't in the house anymore. I can file my taxes with that address. Do I need to change utilities too? How do they check that?

[music12]

who on earth are you renting the house to that you can trust with all your mail??

if the law says that you have to be living in it to keep it through bk, then follow the law. you won't get any help from people on this forum about how to cheat the bk system. it's against forum rules. my best advice is to be sure what the law says about it (by talking to some lawyers/doing your own research), and go from there.

[LimpDisc]

"So...anyone know how they would check/find out that I wasn't in the house anymore. I can file my taxes with that address. Do I need to change utilities too? How do they check that?"

I don't think how\would they find out about it has anything to do with your situation. I have read some of your other posts and it seems like your trying to game the BK system.

"Bankruptcy fraud, a felony, carries a sentence of a fine of up to $250,000 and/or five years in prison"

[Amy26]

Also, from my understanding you still have to report the rental information on your taxes even if you have a loss. I will have to deal with this next year as I rented my property out for the first half of this year at a loss.

Even though you didn't make any money off it you have to report the rental income and then depreciate the value... at least that's what I was told.

[cubswin]

While I appreciate the lecture...that's not what I asked. And I'm not trying to "game" the system. I am simply asking who/how they verify you are actually in the home. Uprooting my daughter for a few months and living in the house just so I can qualify for BK, only to turn around and rent it immediately after seems silly.

The house has never been listed as a rental property despite the fact it is being rented.

I'm here asking for advice and a few of you apparently thought I was posting so that you can get on your high horse and scold me. If you don't know the answer, don't post just to lecture me, please. I am trying to put myself in the best position post-BK. There is nothing wrong with some forward-thinking and preparing before just going in and screwing myself across the board. If this option isn't available to me, then so be it, but why not explore all options before jumping in. Sheesh.

[LimpDisc]

Well you need to list your name and address on your court documents. Are you going to falsify your court documents? You don't live at that address, so that's not your true address. Will you not be listing the house as an asset?

[joh]

No one is coming out to look your house too see who is there. They would find out if some one was out to get you and ratted you out to the tt