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Company Loan Type APR Est. Pmt.

1099 A (Acquisition or Abandonment of Secured Property)

My investment property foreclosed on 12/09/2009 in AZ. Now my 2nd lender sent me 1099 A (Acquisition or Abandonment of Secured Property) has following information
Box 1 Date Acquired by Lender or Abandoned 03/16/10
Box 2 Balance of principle outstanding 80,069 .00
Box 4 Fair Market Value 108,500 .00
Box 5 Borrower was personally liable for payment of Debt

Do I need to pay tax on this? How can I file my 2010 tax return?

Any Help will be appreciable.

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mantri!

Welcome to forums!

Your debts were not forgiven. In such a situation, if you paid off the dues to the lender, then you won't be liable for paying any taxes on the deficient balance. However, you will have to attach this form with your 2010 tax return.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for quick reply. 2nd lender sold my loan to another company/servicer effective from 11/2010 saying another company/servicer must send you notice no later than 15 days but I did not receive any notice from another servicer. Now on 01/2011 I have received the bill from them.
On this information what I should do at the same time I am not in a position to pay the dues to new service. I have primary reseidence and paying the mortgage.
Please let me know what action I should take?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You should request the lender to forgive the dues. However, if the lender forgives the dues, then it will be considered as your income by the IRS and you may have to pay income tax.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I received a 1099-A from my mortgage company. I stopped making payments on my house and therefore my house was foreclosed on in July 2010. The Principal outstanding is 139,067 and the Fair Market value is 163,605. Does this mean that I am going to owe taxes on this?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Patsy!

Welcome to forums!

Did the sale of the property resulted in a deficient balance? If you paid off that deficient balance, then you won't be liable for paying any taxes.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My son had a house repossessed for non payment/abandonment.He received a form 1099 .How does that affect his income tax this year?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I received a 1099-A on a Vacation Ownership Interest with Wyndham Vacations. I cant find where I'm supposed to enter this info on my taxes since it isnt my primary residence.
Box 2=14476.98
Box 4=18549.00
Box 5=Yes
Will I owe any taxes on this? What If I file without the info?
Any help would be appreciated.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi!

Welcome to forums!

To Charlene,

If the lender had forgiven the deficient balance resulting from the property sale, then your son may have to pay taxes on the forgiven debt.

To Dakina,

You should get in touch with a tax adviser and he/she will be able to guide you as to where you need to add the info on your tax documents.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I RECEIVED A 1099A THE OUTSTANDING BALANCE IS 190951.78 THE FAIR MARKET VALUE IS 195482.37. THE MORTGAGE ACQUIRED THE HOUSE IN 7/6/2010. I DONT KNOW IF IT HAS BEEN SOLD. WHAT DO I DO?
HOW CAN I FIGURE OUT WHAT TO FILE ON AND IF I NEED TO FILE ON IT?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi flipga!

Welcome to forums!

You can contact a tax adviser and let him check the 1099A form and inform him about your situation. The tax adviser will let you know whether or not you need to file the form.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

box 2 $235,546.90
fair market value $67,500.00
this is in Arizona, nn now live in CA
will they take my fersal taxes for this??
forclosed 4/2011

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lanaya!

Welcome to forums!

You need to check out the box 5 of your 1099a form. If it has been checked, then you're liable for paying the deficient balance to the lender. In that case, you won't have to pay any taxes. However, if the box 5 remains unchecked and if the lender forgives your debts, then you may have to pay taxes to the IRS for the forgiven debt amount.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just received Acquisition or Abandonment of Secured Property
which says the following:
box 2 $228,488.81
fair market value $73,000.00
this is in Lancaster, CA and this was my investment property;
foreclosed 7/20/12 and they let the tenant remain on property.

Will I be liable for any taxes on this? The property was seriously upside down? I only have my primary residence now and no other properties.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Maria!

Welcome to forums!

If the lender forgives the deficient balance resulting from the sale of the property, then you may be liable for paying taxes. But as the Mortgage Debt Relief Act has been extended, things may be different for you and you may not be liable for the taxes.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Just received a 1099-a for a housei lost, box 2 and box 4 are same amount box five is checked, what am I liable for , ie taxes, or monies

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If the fair market value and the principal owed is same and if the property has been sold off for the same amount, then you're not liable for paying anything.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I received a 1099-A for a mortgage foreclosure.
2. $67,036.53
4. $34,400.00
5. checked

I've read your responses to the questions above, but I guess I'm still confused. If the box 5 is checked, then we WON'T be liable to pay taxes on the difference? But if they are saying we are still "liable" for the debt, how does that work? Will they bill us for that, I guess I don't get it.

Thanks
Confused after leaving a crime ridden neighborhood to protect kids. :/

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ellen!

Welcome to forums!

If your deficient balance has been forgiven by the lender, then you will receive a 1099c form from the lender along with 1099a. As you have received only a 1099a form and the box 5 is checked, I guess you're liable for paying the deficient balance to the lender.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

2012 Box 2: 244,112.98 box 4: 272,992.00 box 5 checked off. Foreclosure due to divorce of house sold in sheriff sale. Prop value was at 190,000 and sold in the 270k range, which I assume is box 4. How will this play out as I'm trying to understand what you've stated from prior questions. Thanks

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Johnny,

Well, if you have problems understanding the form and completing it, then it will be better if you could get in touch with a tax adviser and take his opinion in this regard.

Thanks

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