Posted on: 27th Jan, 2010 07:52 pm
my husband and were received a bankruptcy discharge September 2008, which included a home loan. They foreclosed on us the following year, per our attorney this is "normal" becuase even though we had no mortgage any longer due to the bankruptcy, they still need to foreclose to take the property back. It was foreclosed on September 2009 and now, Jan 2010 we have received a 1099-A form stating that the balence was 84,516 and the FMV was 50,000 and box #5 states "yes" we are are liable for the repayment of the debt. What does this mean? is this an error? I thought the bankruptcy cleared it all away. How does this affect how I need to do my taxes this year? HELP!!!
I had 2 houses, and both were foreclosed. I filed for bankruptcy and I got Chapter 7. If I get 1099, will I be needing to pay it? I'm so worried because I'm already in a category of low income family.
Hi Dorothy!
Welcome to forums!
If you receive a 1099c form because your debts have been forgiven by the lender, then you will be liable for paying the taxes for the forgiven debt as it will be considered as your income. I don't think you will be able to avoid the taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you receive a 1099c form because your debts have been forgiven by the lender, then you will be liable for paying the taxes for the forgiven debt as it will be considered as your income. I don't think you will be able to avoid the taxes.
Feel free to ask if you've further queries.
Sussane
What if the mortgage is discharged in the BK as the posts above point out, and the mortgage company forecloses to acquire the house, and then sends the borrower a 1099-A form with box 5 checked? They should receive the 1099-A because the mortg. co. acquired the house, but if the debt was discharged in a BK, how can they check box 5 and report that to the IRS as debt that you are responsible for repaying?
Hi mp,
Your query has been replied to in the given page: http://www.mortgagefit.com/budgeting-finance/about53854.html . Take a look at it. I hope it will help you.
Your query has been replied to in the given page: http://www.mortgagefit.com/budgeting-finance/about53854.html . Take a look at it. I hope it will help you.
hi, I also received a 1099A from lender, box 2 says 204,000 and box 3 is blank, box 4 is 216,000 -box 5 is marked X, does the x means no or yes. i have seen and read other peoples form saying it actually says the word yes on number 5, Am i liable for this and how is it going to affect our taxes? Also the property was sold for 97,000 and this wasnt listed on the form. please advice? thank you!
Hello I have just received my tax form 1099-A here in Florida for my foreclosed home.
Box 2-->$221,150
Box 4-->$123,675
Box 5--> Mark X Personally Liable
My question is for what I have read so far in this great forum.When I do my taxes this year I must include this information with my tax return?
And how this is going to affect my tax refund for this year since I haven't got a Tax form 1099-C?
Thanks so much for the help!
Box 2-->$221,150
Box 4-->$123,675
Box 5--> Mark X Personally Liable
My question is for what I have read so far in this great forum.When I do my taxes this year I must include this information with my tax return?
And how this is going to affect my tax refund for this year since I haven't got a Tax form 1099-C?
Thanks so much for the help!
Hi Sassy!
Welcome to forums!
If the box 5 is checked, then you will be liable for paying off the deficient balance to the lender. As you're personally liable for paying the deficient balance, you won't be liable for paying any taxes to the IRS.
Hi Angel,
When you file your taxes, you will have to include this document. You can even contact a tax adviser in this regard and he will guide you further in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the box 5 is checked, then you will be liable for paying off the deficient balance to the lender. As you're personally liable for paying the deficient balance, you won't be liable for paying any taxes to the IRS.
Hi Angel,
When you file your taxes, you will have to include this document. You can even contact a tax adviser in this regard and he will guide you further in this regard.
Feel free to ask if you've further queries.
Sussane
i received a 1099-a and have filed bankruptcy on this house in 2010. my lawyer also fixed a quick claim deed. the fair market value on the 1099-a was higher than my principal loan. however, i owed and took bankruptcy on this loan and a home equity loan which totaled much higher than the fair market value. do i owe any taxes? my lawyer says it should have all been cleared in bankruptcy.
Hi Wanda,
As far as I know, even though you filed bankruptcy, you will be liable for paying taxes for the forgiven debt. You can contact a tax adviser and take his opinion in this matter. He will assist you in a better manner in this matter.
As far as I know, even though you filed bankruptcy, you will be liable for paying taxes for the forgiven debt. You can contact a tax adviser and take his opinion in this matter. He will assist you in a better manner in this matter.
I received a bankruptcy discharge July 2011, which included a 2 home loans. They foreclosed on investment property on April 2011, per our attorney this is "normal" because even though we had no mortgage any longer due to the bankruptcy, they still need to foreclose to take the property back. It was foreclosed on April 2011 and now, Jan 2012 we have received a 1099-A form stating that the balence was 181,916 and the FMV was 96,116 and box #5 states is blank we are are liable for the repayment of the debt. What does this mean? is this an error? I thought the bankruptcy cleared it all away. How does this affect how I need to do my taxes this year? HELP!!!
Hi Mrs J!
Welcome to forums!
If you have filed bankruptcy and got a discharge from it, then you're not liable for the deficient balance resulting from the sale of the property. You should contact your lender and have a word with him in this regard and sort out the issue.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you have filed bankruptcy and got a discharge from it, then you're not liable for the deficient balance resulting from the sale of the property. You should contact your lender and have a word with him in this regard and sort out the issue.
Feel free to ask if you've further queries.
Sussane
I filed my taxes on Jan 30 after filing I recieved a 1099A ,I thought all 1099 forms had to be recieved by end of January, the house was included in a bankrupcty although we continued to live and pay the mortgage afterwards until no longer able to about two years ago, do I have to file an amended tax form and claim the difference between lines1 and 4 or can I include this in next years taxes if I owe it.
You should contact a tax adviser whether or not you should file an amended tax return. He/she will guide you better in this regard.
How many years do you need to keep income tax files.
Hi Renee,
You can check out the given page in order to find out how long you need to keep your income tax records:
"http://www.bankrate.com/finance/money-guides/how-long-should-you-keep-tax-records.aspx".
You can check out the given page in order to find out how long you need to keep your income tax records:
"http://www.bankrate.com/finance/money-guides/how-long-should-you-keep-tax-records.aspx".