How do you file taxes after chapter 7 and surrendering a house?

First, the only and best source of tax information is from a licensed professional who as reviewed all your financial information.

The documents created in the Chapter 7 Bankruptcy, and any foreclosure or surrendering documents can be used to estimate any gains or losses occurred by the disposal of the real estate asset. However, the IRS only allows recognition of actual gains or losses, not those suffered by deprecation in the assets value nor any deficiency balance you may owe and have not paid.

So, if you had a $100,000 house, put $10,000 down with a $90,000 mortgage and you disposed of the asset the next day for $90,000, then your actual loss is $10,000 - even if the market value of the house jumped to $200,000. Also, this example does not factor in any renovation, fixed improvements, or amortization of your payments up to the disposal.

Bottom line is, your losses can not be more then your out of pocket.