Posted on: 13th Feb, 2012 03:09 pm
We filed BK were discharged in Jan 2011 home was foreclosed in Oct 2011 we got form 1099A which reads as follows
Box 1 Oct 2011
Box 2 180,000
Box 3 Blank
Box 4 99,000
Box 5 not checked
So what form do I use to file taxes with 1099-A, should I expect or wait to receive a 1099-C to file my taxes?
Thanks for the help
Box 1 Oct 2011
Box 2 180,000
Box 3 Blank
Box 4 99,000
Box 5 not checked
So what form do I use to file taxes with 1099-A, should I expect or wait to receive a 1099-C to file my taxes?
Thanks for the help
Hi Mike!
Welcome to forums!
As box-5 is not checked, I guess your delinquent amount resulting from the sale of the property have been forgiven by the lender. In that case, you will be receiving a 1099c form from the lender and you will have to file both the forms when you file your tax returns and then you will also be liable for paying taxes for the forgiven debt to the IRS.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As box-5 is not checked, I guess your delinquent amount resulting from the sale of the property have been forgiven by the lender. In that case, you will be receiving a 1099c form from the lender and you will have to file both the forms when you file your tax returns and then you will also be liable for paying taxes for the forgiven debt to the IRS.
Feel free to ask if you've further queries.
Sussane
I'm curious how can the amount be delinquent if it was included in the bankruptcy. And if the debt was discharged how is it I would owe taxes on it? Also what tax form would I need to fill out.
thanks again for the help
thanks again for the help
Hi Mike,
If the debt was included in bankruptcy filing, then you won't be liable for paying it to lender. But you will be charged taxes for the forgiven debt by the IRS as the forgiven debt will be considered as your income.
Thanks
If the debt was included in bankruptcy filing, then you won't be liable for paying it to lender. But you will be charged taxes for the forgiven debt by the IRS as the forgiven debt will be considered as your income.
Thanks