money  taxes


Question by  pollypink (36)

What does the term buying back taxes mean?

My brother said that he would be buying back his taxes and I have no idea what he is talking about.


Answer by  trdimc2009yahoocom (171)

Buying back taxes should just be another term for owing the IRS back taxes. Back taxes are taxes owed to the government for previous years. When they are not paid when they are due, the back taxes will incur interest and fines for the previous years, until the debt it paid in full.


Answer by  jsmith (2067)

Back taxes refer to some property that is for sale and can't transfer while a tax lien still in place because taxes owed. A buyer pays the tax debt and deducts that from the principle going to the seller. Your brother likely means he is paying off his tax debt.


Answer by  Cecilia (2828)

It sounds like there's a miscommunication. He may have been talking about buying property on which the owners are delinquent on back taxes. Ask him to explain it again.


Answer by  jp1999 (231)

If a property owner fails to pay taxes on their property, then they owe 'back taxes' and are subject to losing their property is taxes remain unpaid. In this event, anyone can purchase the property by simply paying the taxes that are due.


Answer by  Avw (77)

The term buying back taxes refers to the purchase of real estate or a lien on the property from the taxing authority. This is typically done at auction when the lender has chosen not to pay the back taxes and so the tax lien supercedes that of the lender.


Answer by  Liz59 (10966)

The term buying back taxes means getting your deductibles from this statement. In the way it means that you will be getting your taxes back or money back because the amount you use for your taxes is enough. It is basically just a phrase that will keep you into inspiring hope.

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