Wrong fair market value on 1099-A

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confused tax payer

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Post Posted: Fri Feb 05, 2010 12:34 pm    Post subject: Wrong fair market value on 1099-A
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Can I go ahead and file my taxes while I clear up an incorrect fair market value on a 1099-A form from a lender? The property sold for $290,000 and the fair market value was listed at $475,500. The principal amount outstanding is $405,000.
Icon Mini Profile jenkin7
jenkin7




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Post Posted: Thu Feb 11, 2010 11:17 pm    Post subject:
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Hi confused,

If the 1099A form has inaccurate information given, you need to contact the IRS to rectify the error. You can also contact your lender since they sent you the 1099A form. If the fair market value of the property was less than the outstanding balance on the loan, you will be liable to pay tax on the difference. Then the lender will send you a 1099C form and you will have to report the income from the discharged debt. But if you used the property as your primary residence, you can claim exemption from paying taxes on this discharged debt under the Mortgage Forgiveness Debt Relief Act, 2007.
Gregg

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Post Posted: Tue Feb 15, 2011 11:28 am    Post subject: 2 1099a forms with different fmv amounts
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I received 2 1099a forms from Bank of America for the same property with 2 diffent FMV listed. I have tried for 3 weeks to get BoA to correct to no avail. Any suggestions are welcome
Icon Mini Profile jameshogg
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Post Posted: Tue Feb 15, 2011 9:15 pm    Post subject:
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Hi Gregg,

You should contact your lender and somehow negotiate with him to rectify the matter. There is hardly anything to do unless they rectify the matter.

Thanks
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