On form 1099-A box 4 is more than box 2, what is due to IRS?

House was in deed of lieu and form 1099-A box 4 was appraised at 80,000. but box 2 balance of principal was 67,000. How will that effect tax this year?

jameshogg · Posted: Tue Feb 17, 2009 9:59 pm Post subject:

Hi Guest,

If the lender had forgiven the deficient amount resulting from the sale of the property, then you should have received 1099-c form. On receiving the form, you would have to pay the taxes on the forgiven amount. But you have mentioned that you have received 1099 A form. 1099-A forms are issued in case of acquisition or abandonment of secured property. So did you cancel your deed in lieu?

Thanks

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