A happy case of life after bankruptcy! (Los Angeles attorney David Lozano shares the story!)
A while back there was an article in a Sapurstein & Associates newsletter about a tax ruling concerning the tax deduction for a mortgage that centered around a couple and their son. After filing for bankruptcy some months prior, the couple was looking to take out a mortgage but didn’t qualify due to their credit. Since the couple was still rebuilding their credit score, their son took out the mortgage using his credit score.
Everything went smoothly, but when tax time rolled around the question became who should receive the tax deduction for the mortgage? Although the mortgage was under the son’s name, his parents were the ones actually living in the house, making the mortgage payments, and maintaining the house. The tax court finally ruled that the parents were the equitable owners and gave them the tax deduction.
I am always happy to see things work out for people who have gone through bankruptcy. It is stories like this one that reinforce what I tell my clients everyday–bankruptcy is a new beginning! Although there may be a few stumbling blocks along the way, small setback can be overcome! Contact me for a free consultation and get started on your own new beginning!