1099 A (Acquisition or Abandonment of Secured Property)

mantri_2000 · Joined: 26 Jan 2011 Posts: 2 2.08 Dollars($)

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.

smithsussane · Posted: Wed Jan 26, 2011 8:58 pm Post subject:

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

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?

jameshogg · Posted: Thu Jan 27, 2011 10:39 pm Post subject:

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

Guest

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?

smithsussane · Posted: Wed Feb 02, 2011 10:04 pm Post subject:

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

Guest

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

Guest

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.

smithsussane · Posted: Mon Feb 07, 2011 10:16 pm Post subject:

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

Guest

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?

smithsussane · Posted: Thu Feb 10, 2011 9:56 pm Post subject:

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

Guest

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

smithsussane · Posted: Thu Feb 09, 2012 12:03 am Post subject:

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

Guest

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.

smithsussane · Posted: Mon Jan 28, 2013 11:39 pm Post subject:

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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