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Guest

The first home lost to forclosed and got a 1099a $295,050.00 and the fmv $314,786.00. The 2nd home was sold in a shor sell and got a 1099c debt canceled $71,519.75 and the fmv is $340,000.00. So what should I do? Will I have to pay tax on the 1099. I live in MN. Thanks!

jameshogg · Posted: Mon Mar 02, 2009 9:20 pm Post subject:

Hi CV,

You will have to pay taxes for the canceled debt. The second lender has issued a 1099-c form to you because he has forgiven a certain amount of debt. This forgiven amount will be considered as your income by the IRS and thus you will have to pay taxes on it.

Thanks

Guest

The lender sent me 2 1099-A form. My principal balance on the 1st form was 82,437.00, and FMV is 252,000.00. The principal balance on the 2nd form is 330,369.00, and FMV is 252,000.00. The lender did not combine both principal balance. Am I liable to pay taxes?

Guest

Yes, you may be liable to pay taxes. However, depending upon your state laws, your taxable amount may be forgiven. Do consult a tax adviser on this issue.

Guest

I received a 1099 a last week, but I already filed my taxes and received a refund. Can I modify and add the 1099 a. Will I have to pay taxes? bal of princ $156,628.77 value $146,000.00.

Thanks Pat

Guest

You will have to contact the IRS and check if you will be able to modify the taxes or not.

Guest

I received 1099 A from my lender against my home which was foreclosed on september12,2008. Tthat form shows the outstanding balance was $487k and the fmv $330.Now my question is , DO I NEED TO PAY TAXES ON THE DIFFERENCE AND ANOTHER QUESTION IS , I RESPONSIBLE TO PAY THE DIFFERENCE TO THE LENDER

Posted: Thu Mar 12, 2009 3:39 am Post subject:

I don't think you will have to pay taxes on the deficient amount. However, better consult a tax adviser in this case.

Guest

The Hope for Homeowners Program(H4H). They have offered to sell my own home to me for 145K. WE orig. purchased it for $385,000. The Difference is 235K. They stated that they will issue me a 1099. However, this program, allows FHA to keep 50% of the gains after the house is sold. So technically, I would have to pay taxes on the 1099, that lender will give for the bad debt, and then i will get another 1099 when/if i sell the house in the future. Would any one have an idea of much i will owe the IRS on 235k?
I only make about 50k and support my wife and 3 kids. WE live in the state of California.

I am trying to figure out if it is worth going through this program.
I will have a lower mortgage, however, if i have to pay the IRS thousands of dollars, then i might as well let the house go.

Niicss · Posted: Mon Mar 30, 2009 1:46 am Post subject:

Hi Guest

You will have to pay taxes on the deficient amount resulting from the sale of the property. However, with the Mortgage Debt Relief Act, the taxes can also be forgiven. I would suggest you to contact a tax adviser and take his opinion on this issue. He would be the best person to help you out.

Thanks.

Guest

3 years ago we filed bankruptcy and surrendered our home. We have just now received for 1099 A and the FMV is nowhere near what the real fair market value of the house is. The principal states $143532.30 and the FMV is listed as $190086.75. I know they sold the house and I believe it was listed for $124000.00. That is no where listed on the form. Do we need to file this with our taxes? Not to sure what it all means. I thought that when we filed bankruptcy it wiped out the debt. Also they stated the date of lenders acquisition was 03/18/2009. We surrendered the house 3 years ago

Guest

I got 1099A FMV is 390.000 and Balace of principal is 302.000. I have to pay taxes

jerry · Posted: Thu Feb 04, 2010 3:11 am Post subject:

Hi lw,

If the home was sold for less than what was owed on the property, you will be responsible for the deficiency. The lender sent you the 1099A form as he is required to report it to the IRS. However, it does not mean the debt has been cancelled. If the debt is cancelled, they will send you a 1099C form and you will have to pay taxes on forgiven debt amount. But in your situation, you are not required to pay any taxes on the forgiven debt because it has already been discharged through bankruptcy. You do not have to pay tax on discharged debts.

Hi liss,

The outstanding balance on the mortgage principal was $302.000. But do you know how much the property was sold for at the foreclosure auction? If the property was sold for a price less than the outstanding mortgage principal, you will be liable for a deficiency. The lender sent you the 1099A form to report the deficiency. But you do not have to pay any taxes on this deficient amount until you receive a 1099C form which states your lender has forgiven the balance on the mortgage. Then, you will have to pay taxes. But you can claim exemption from paying taxes, if you have used the property as your principal residence and the debt was cancelled not before 2007.

Thanks,

Jerry

Posted: Thu Feb 04, 2010 4:58 pm Post subject: 1099 A

My Morgage was discharge in bankrupcy chap 7 in feb 2009.1st morgage sent me a 1099a with a balance on it of 197,000. The 2nd morgage sent me a 1099c with a balance of $ 0. Any idea what happend ? On my credit report they both have a $0 bal charged off to bankrupcy

savior70 · Posted: Fri Feb 05, 2010 2:58 am Post subject:

Hi Guest,

You're not liable to pay any of the first or the second mortgage since you've been discharged through bankruptcy. The second lender sent you the 1099C form as they've cancelled the debt. The first lender sent you a 1099A because they foreclosed the property and they need to report the deficiency to the IRS. But no matter whether you've been sent a 1099A or a 1099C by the lender, you will not have to pay any taxes if you've been discharged through bankruptcy.

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I got 1099A for my primary residence - How do I file taxes?