taxes bankruptcy

[beatrice]

I recently filed bankruptcy chapter 7, my sister and her family resides in the house I soley own in gEORGIA which was included in the bankruptcy and I live in N.Y. I was wondering if I don't reaffirm with the first and second mortgage companies and my sister continues to stay current with both mortagages would the mortgage company continue to pay the property taxes as they have done in the past. Also would I still be able to claim the house on my taxes like I have done in the past as a rental property claiming the repairs and taxes since its listed on my bankruptcy. These are my concerns, the reason I chose not to reaffirm is because in case she stop paying a year or 3 years from now, I wouldn't be able to file for bankruptcy for another 10 years. I am trying to improve my credit since filing for bankruptcy. One day I'll like to own and live in my own home or condo, which would take years due to my bankruptcy. Could any one answer these questions. Thank you

[justbroke]

If you continue to pay on time, nothing should happen. The fact that your sister is paying, is only relevant to the fact that the bank considers it as if "you" are continuing to pay. Nothing should change at all, except that perhaps you won't be able to pay on-line, and only "informational" statements and "escrow" account calculations are sent.

Since "you" are paying, you can claim the property taxes. Technically she is renting the home from you. Another technicality is, that you should be reporting this "business" on your annual tax return reporting the rent receipts. (See Publication 17 from the IRS.) If you haven't been doing this, you are probably not getting all your tax benefits... unless you actually make a profit from your renting the home... which could increase your tax liability.