Can I sell a property that has a Income tax lien on it?
I know that whatever profit there is on the sale would first go to the IRS toward the tax lien, but I am not sure how the tax lien will affect the sale. By the way, after selling the property the tax lien will not be totally paid off. All of the money from the sale will go toward the lien and it won’t be enough to pay the entire debt. Does that effect the sale?Will it take longer to close the deal? does the IRS have to sign off on it? How does it affect the marketing of the property and does it affect the buyer in any way?
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Tags: Income Tax, Irs Lien, Property Lien
sell property | , 21 Jun 10
By Miss V, June 22, 2010 @ 6:00 am
Title can only be transferred if it is free of liens. You may want to ask the IRS if they will accept the amount they receive, otherwise, the sale fails. Unless you bring the amount needed to the table.
By mclass920, June 24, 2010 @ 3:36 am
miss v is correct.
By ed m, June 25, 2010 @ 5:05 am
miss v hit the nail on the head. or in your case your coffin
By STEVEN F, June 26, 2010 @ 9:55 pm
It is NOT the profit that goes to the IRS first. The ENTIRE proceeds go to the IRS first. They get paid before the mortgage does. Unless the tax lien is the only lien, you will not be able to clear the title. If the IRS believes the sale price is as much as you can get, they will probably sign off on the sale, but will not forgive the remaining tax debt. You should probably talk to a professional tax adviser before you list the home. If possible, get them in the same room with a Realtor.