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Updated almost 6 years ago,
How to report tax lien gain/loss in tax return?
Hey guys,
I am new to tax lien investing and am filing my tax this year. I am confused on how to report the gain/loss.
I started buying tax liens at the end of 2017 and a few of them got redemption in 2018. A couple of them yield a small gain and a few of them ended with loss due to the nonrefundable fees those counties collected, and overall it was a loss. I did not receive any tax form from the counties, so do I still need to report these gain/loss on my tax return? If the answer is yes, which forms should I use? Are they interest or are they capital gain/loss?
Thanks so much for help!
Sophie