Posted on: 25th Jan, 2012 06:05 pm
Hello,
I received a 1099A from our lender and a 1099C from our ELOC. We filed bankruptcy in 2009 and forclosed on our home in 2010. Our FMV was less than the lender balance. Both the lender and ELOC were included in the bankruptcy. We also live in Arizona and have the deficiency law where they will not attempt to collect a deficeny debt. Because it was included in the bankruptcy and we live in Arizona, do we stil have to file both forms?
Do we also have to file with a CPA or can we file with turbo tax like we usualy do? Thank you for your help.
Kim
I received a 1099A from our lender and a 1099C from our ELOC. We filed bankruptcy in 2009 and forclosed on our home in 2010. Our FMV was less than the lender balance. Both the lender and ELOC were included in the bankruptcy. We also live in Arizona and have the deficiency law where they will not attempt to collect a deficeny debt. Because it was included in the bankruptcy and we live in Arizona, do we stil have to file both forms?
Do we also have to file with a CPA or can we file with turbo tax like we usualy do? Thank you for your help.
Kim
Hi Kim,
As far as I can understand, you will have to include both the forms while you're filing your taxes. You can do it on your own but if you're facing any problems or have any doubts, it will be better to contact a CPA and take his help.
As far as I can understand, you will have to include both the forms while you're filing your taxes. You can do it on your own but if you're facing any problems or have any doubts, it will be better to contact a CPA and take his help.
It was me above... Forgot to log in!!
Thank you for your response!
Kim
Kim
I would definitely file both and I would absolutely contact a tax professional to verify you are filing correctly. I'm not a CPA, but I am a loan officer, and I have heard nightmare stories that pertain to this. Save yourself a headache later by doing it right the first time.
A creditor issues 1099-A to a borrower when the borrower abandons real property. But, a 1099-A is not a notice of forgiveness. 1099-C is a notice which indicates forgiveness of debt.