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How do we file tax if we get 1099A Form after bankruptcy?

my husband and were received a bankruptcy discharge September 2008, which included a home loan. They foreclosed on us the following year, per our attorney this is "normal" becuase even though we had no mortgage any longer due to the bankruptcy, they still need to foreclose to take the property back. It was foreclosed on September 2009 and now, Jan 2010 we have received a 1099-A form stating that the balence was 84,516 and the FMV was 50,000 and box #5 states "yes" we are are liable for the repayment of the debt. What does this mean? is this an error? I thought the bankruptcy cleared it all away. How does this affect how I need to do my taxes this year? HELP!!!

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To tonester,

I've replied to your query at http://www.mortgagefit.com/budgeting-finance/1099a-fmv.html#156495 .

Hope it helps you. However, if you have further queries, feel free to ask the community.

Like | Dislike | Share | Posted: Tue, 03/23/2010 - 22:37

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello I have just received my tax form 1099-A here in Florida for my foreclosed home.

Box 2-->$221,150
Box 4-->$123,675
Box 5--> Mark X Personally Liable

My question is for what I have read so far in this great forum.When I do my taxes this year I must include this information with my tax return?

And how this is going to affect my tax refund for this year since I haven't got a Tax form 1099-C?

Thanks so much for the help!

Like | Dislike | Share | Posted: Thu, 01/26/2012 - 07:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I filed my taxes on Jan 30 after filing I recieved a 1099A ,I thought all 1099 forms had to be recieved by end of January, the house was included in a bankrupcty although we continued to live and pay the mortgage afterwards until no longer able to about two years ago, do I have to file an amended tax form and claim the difference between lines1 and 4 or can I include this in next years taxes if I owe it.

Like | Dislike | Share | Posted: Thu, 02/09/2012 - 07:39 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Billfitz!

Welcome to forums!

If you're not personally liable for the debts, then it means that the lender has forgiven your debt. In such a situation, the IRS will consider the forgiven debt as your income. However, depending upon the Mortgage Debt Relief Act, you won't have to pay taxes on the forgiven debt.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 02/02/2011 - 20:46

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi, I also received a 1099A from lender, box 2 says 204,000 and box 3 is blank, box 4 is 216,000 -box 5 is marked X, does the x means no or yes. i have seen and read other peoples form saying it actually says the word yes on number 5, Am i liable for this and how is it going to affect our taxes? Also the property was sold for 97,000 and this wasnt listed on the form. please advice? thank you!

Like | Dislike | Share | Posted: Thu, 01/26/2012 - 05:35 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I had 2 houses, and both were foreclosed. I filed for bankruptcy and I got Chapter 7. If I get 1099, will I be needing to pay it? I'm so worried because I'm already in a category of low income family.

Like | Dislike | Share | Posted: Tue, 10/18/2011 - 10:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

1099 a 2009 in fl

box 2:182,520.36
box 3: 100.00
box 5 yes

i read alot on this but no where have i seen fmv at 100.00 dollars i dont knwo what to do does a 982 form apply to me the house was my primary residence

Like | Dislike | Share | Posted: Mon, 03/22/2010 - 14:24

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mrs J!

Welcome to forums!

If you have filed bankruptcy and got a discharge from it, then you're not liable for the deficient balance resulting from the sale of the property. You should contact your lender and have a word with him in this regard and sort out the issue.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 02/01/2012 - 23:25

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just wanted to thank you for posting and having this site. I have been trying for weeks to figure out what to do with this 1099A since we did the deed in lieu and never reaffirmed the debt from bankruptcy. Thank you so much!

Like | Dislike | Share | Posted: Wed, 03/02/2011 - 09:06 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Dorothy!

Welcome to forums!

If you receive a 1099c form because your debts have been forgiven by the lender, then you will be liable for paying the taxes for the forgiven debt as it will be considered as your income. I don't think you will be able to avoid the taxes.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 10/18/2011 - 22:14

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I received my 1099 A and box 4 is more than box 2 does this mean I won't have to pay taxes on this? What if I haven't received a 1099 C, do I need this to file my 2010 taxes or do I just enter the amounts that are indicated on 1099 A on the applicable tax form. What is the applicable tax form for this situation?

Like | Dislike | Share | Posted: Thu, 02/24/2011 - 20:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am trying to help my Dad (of which is seperated and in financial dissaray) file his taxes. He received a 1099 A for the home he foreclosed in 2009. This home was their primary residence until the beginning of 2008. The mortgage was 59,800 and the FMV was 66,000. the lender auctioned the home for $17,000. He has not filed bancruptcy and we are working with his different lendors to avoid bankruptcy.

It appears as if he won't have to pay taxes on the 1099A 59,800 or the difference because the FMV is higher. Does he still need to record this on his taxes as income? Additionally, does he have to file this as a sale and compute capitol gains? I am feeling very confused and the more I read the more confusing it appears. Thank you for your assistance and any points in the right direction.

His wife just sent this to him last week and said that she just got it (yeah right!)

Like | Dislike | Share | Posted: Fri, 03/26/2010 - 18:35 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Titlewoman,

You will have to attach 1099A form with your tax documents. You should contact a tax adviser and he will better guide you in this matter.

Like | Dislike | Share | Posted: Wed, 03/02/2011 - 21:33

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have the same question having received a 1099A and not knowing if I need to report it, but also wonder if I actually suffered a loss on the involuntary conversion; in other words I owed less than I actually had invested into my home, do I get to claim a loss on the sale?

Thank you!

Like | Dislike | Share | Posted: Fri, 01/29/2010 - 09:42 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

our house went into foreclosure,and we filed bankruptcy.On our credit report it shows $50,000 dollars still owed.Are we still responsible for that amount?

Like | Dislike | Share | Posted: Wed, 05/19/2010 - 09:49 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, We have a house in NM that we lived in for 13 mos. we rented it for about a year. We put it in a bankruptcy and had it discharged. The bank now wants us to short sale. We orginally bought the house for 400k and now will short sale it for 325k. The bank will forgive the debt. If we get a 1099 that shows a difference of 75k do we have to pay taxes on that and about how much. We currently make about 40k a year.

Like | Dislike | Share | Posted: Fri, 12/31/2010 - 12:36 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi I foreclosured on my home in Ca. that I lived in for less than 2 years. I was in an auto accident 2 weeks after signing escrow which was financially devastating. I received a 1099a. Box 2 says $334,464.71. Box 4 says $367,257.03. So would seem I don't owe but I only lived there 1 1/2 years. I also had to file bankrupcty before the foreclosure. Will I owe taxes? I will be seeing a CPA, just not for 2 more weeks. Thanks!

Like | Dislike | Share | Posted: Sun, 02/21/2010 - 16:20 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Help,

The box number 4 shows the fair market value of the property and the box number 2 lists the outstanding principal balance on the mortgage. In this case, the fair market value is less than the outstanding balance on the loan and your mom has a taxable income from the discharge of indebtedness. Thus, your mom will have to report this income to the IRS. However, if she used the property as her primary residence, she can claim exemption from paying taxes on the discharged debt amount by filing a Form 982 along with her tax return.

Thanks,

Jerry

Like | Dislike | Share | Posted: Thu, 04/01/2010 - 02:12

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi LOIS,

You were not personally liable for paying the balance amount. In that case, you'll have to mention it in your tax returns. It will be better if you could contact a tax adviser and take his opinion in this matter.

Thanks

Like | Dislike | Share | Posted: Wed, 10/13/2010 - 22:24

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sassy!

Welcome to forums!

If the box 5 is checked, then you will be liable for paying off the deficient balance to the lender. As you're personally liable for paying the deficient balance, you won't be liable for paying any taxes to the IRS.

Hi Angel,

When you file your taxes, you will have to include this document. You can even contact a tax adviser in this regard and he will guide you further in this regard.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 01/26/2012 - 23:14

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To bucko,

If you received a 1099A form from your lender and the outstanding principal balance was more than the fair market value, you will have to report the difference as your income. You do not have to pay tax on this discharged debt under the Mortgage Forgiveness Debt Relief Act, 2007, provided you used the property as your primary residence. If you are claiming the exclusion from taxes because you used the property as your principal residence, you need to fill out lines 1e and 2 on the form 982. You do not have to fill out the entire form.

Like | Dislike | Share | Posted: Fri, 02/12/2010 - 01:10

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How many years do you need to keep income tax files.

Like | Dislike | Share | Posted: Sun, 02/12/2012 - 11:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We filed chap 7bankruptcy 12/11 and was discharged 4/12. Our second home was foreclosed on 9/12. The 1099 a form shows a higher amount in box 4 than 2. My question is whether this is considered to be taxable income because it was not our primary residence. We did not receive an income on this home since 4/11, when a person walked away from a lease purchase agreement.
The form shows box 1 9/12
Box 2 $131,000
Box 3 blank
Box 4. 151,000
Box 5 checked yes
Thank you for any information you can provide.

Like | Dislike | Share | Posted: Thu, 01/10/2013 - 15:12 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Gabrielle!

Welcome to forums!

The bank will not be able to come after you for the deficient balance resulting from the short sale. This is because, your mortgage has been discharged in your bankruptcy filing. However, the forgiven debt will be considered as your income and you may be liable for paying taxes. You should contact a tax adviser and take his opinion in this matter.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 12/31/2010 - 21:52

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jack,

If you defaulted on your mortgage and your lender foreclosed on your property, he will send you a 1099-A form. The box number 2 on this form shows the principal balance owed on the mortgage. The box number 3 shows the amount of interest owed on the loan. What amount does the box number 4 show?

The box 4 shows the fair market value of the property. If the amount listed in box 4 is less than the amount listed in box 2, you will owe the difference. The box 5 states that you are personally liable to repay the difference.

If the lender cancels this difference, you will owe taxes on this cancelled debt. You will be required to report this to the IRS. However, if you used the property as your primary residence, you can avoid paying taxes on this cancelled debt amount. You will have to file a form 982 to claim the exemption from taxes under the Mortgage Forgiveness Debt Relief Act, 2007.

Thanks,

Jerry

Like | Dislike | Share | Posted: Wed, 02/17/2010 - 01:17

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jennifer,

If the fair market value (FMV) listed on the Form 1099A was more than the principal balance your dad owed on the mortgage, he does not have report any income due to discharge of indebtedness.

However, he will have to report the foreclosure as a sale for tax purposes and calculate the capital gains. His capital gains = Fair market value - the adjusted basis in the property (purchase price + major improvements). He will have to report this gain as his income. But in case he had used the property as his principal residence for at least 2 years out of the 5 years ending on the date of the foreclosure, he can exclude $250,000 from income.

For more information, you can refer to the following page:
http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Thanks,

Jerry

Like | Dislike | Share | Posted: Sat, 03/27/2010 - 02:11

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rachelle,

What your attorney said is right. Since the mortgage has been discharged through bankruptcy, you are not responsible for it any longer. However, the lender still needs to foreclose the property to satisfy the mortgage lien. If the sales price of the house does not satisfy the mortgage lien, there will be a deficiency. But as you have been discharged from bankruptcy, you do not have to pay it off. You will also not be required to pay any taxes on this discharged debt. The lender sent you the 1099A form because they are required to report the deficiency to you as well as to the IRS.

Like | Dislike | Share | Posted: Wed, 01/27/2010 - 22:05

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY COMPANY FILED BANKRUPCY. WE RECIEVED A FORM 1099A. DO WE HAVE TO REPORT IT ON OUR TAXES. BOX 2 SHOWS $59,433.80 AND BOX 4 SHOWS $24,550.00. BOX 5 HAS A CHECK MARK IN THE NO BOX.

Like | Dislike | Share | Posted: Wed, 10/13/2010 - 16:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have recieved a 1099-A from a previous lender. I worked with this lender for a year and gave the house back to them in lue of forclosure. They excepted and sold the house after everything was completed for less than I owed. They sent me a letter disolving me of all debt. Do I have to claim this difference in what they sold it for compared to what I owed as income this year ??

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 10:27 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mike!

Welcome to forums!

Your query has been answered in the given page: http://www.mortgagefit.com/budgeting-finance/about53953.html . Please take a look at it. I hope it will help you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 02/13/2012 - 23:07

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Renee,

You can check out the given page in order to find out how long you need to keep your income tax records:
"http://www.bankrate.com/finance/money-guides/how-long-should-you-keep-ta....

Like | Dislike | Share | Posted: Sun, 02/12/2012 - 22:40

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To rogerdana,

You do not owe any taxes on the canceled debt amount if the debt was discharged through Chapter 7 of the Title 11 of the United States Bankruptcy Code. IRS clearly states that you do not have to pay any tax on the canceled debt amount if
1. You used the property as primary residence.
2. The debt was discharged through bankruptcy.
3. You were insolvent.
4. The debt was a certain type of farm debt that qualifies for exemption.

To get more information on how you can claim exemption from paying taxes on the debts discharged through bankruptcy, you can refer to the following page:
http://www.irs.gov/publications/p4681/ch01.html#en_US_publink100080240

Like | Dislike | Share | Posted: Thu, 04/22/2010 - 03:11

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 form do I use to file taxes with this form should I expect or wait to receive a 1099-C to file my taxes?

Thanks for the help

Like | Dislike | Share | Posted: Sun, 02/12/2012 - 23:51 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Laurie,

The box number 4 indicates the fair market value of the property, while the box number 2 shows the amount of money you owe. Since the fair market value of your property is more than the outstanding loan amount, you do not have any income from any cancelled debt. Therefore, you do not have to pay any tax for discharge of indebtedness.

Like | Dislike | Share | Posted: Mon, 02/22/2010 - 23:56

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Gracie,

Was the debt discharged through bankruptcy? If it was, then you are no longer personally liable to repay the mortgage. You can send a letter to the credit bureaus along with the proof of your bankruptcy discharge and request them to remove the inaccurate information from your credit report.

Have you been sent any 1099 Form by the lender? If you have received one, you need to report it to the IRS. But you do not have to pay any tax as debts discharged through bankruptcy can be excluded from your income on the tax return.

Like | Dislike | Share | Posted: Wed, 05/19/2010 - 21:05

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The form indicates that I am NOT personally responsinle for the repayment of debt. What's up here?

Like | Dislike | Share | Posted: Wed, 02/02/2011 - 17:08 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Wanda,

As far as I know, even though you filed bankruptcy, you will be liable for paying taxes for the forgiven debt. You can contact a tax adviser and take his opinion in this matter. He will assist you in a better manner in this matter.

Like | Dislike | Share | Posted: Sun, 01/29/2012 - 23:51

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi gregshully!

Welcome to forums!

You will receive the 1099c form only when your debts are forgiven by the lender/creditor. This will prove the fact the forgiven debt is a taxable amount as it will be considered as your income. If you pay off the balance dues, then you won't receive the 1099c form.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 03/28/2011 - 22:54

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In July 2009 I lost a rental propery to foreclosure in Arizona(they don't have deficiency judgements there)..I received a 1099A from the lender...balance owing less that FMV..at a total loss in reporting to IRS..to owe or not to owe..that is the question!!

Like | Dislike | Share | Posted: Tue, 03/30/2010 - 11:08 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You should contact a tax adviser whether or not you should file an amended tax return. He/she will guide you better in this regard.

Like | Dislike | Share | Posted: Thu, 02/09/2012 - 23:30

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tina,

The form 1099c is issued in regards to cancellation of debt. I guess after the short sale, the lender had forgiven your delinquent mortgage balance. In such a situation, you may be liable for paying taxes. But again, as the Mortgage Forgiveness Debt Relief Act has been extended, so you may not have to pay the taxes.

Like | Dislike | Share | Posted: Sun, 01/13/2013 - 22:30

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for your quick response. However I do have an additional questions after your response, does the 1099-A form affect how I should do my taxes this year? IE: should I go to a CPA (or equivalent) to get my taxes done rather than using TurboTax as I normally do? Do I need to "address" the 1099-A form on my taxes or is it for informational purposes only?

Like | Dislike | Share | Posted: Thu, 01/28/2010 - 03:23

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Form 1009-a for 2009

Box 2 192,000
Box 3 209,000
Box 5 is marked YES

What does this have in detail for taxes, I have no idea on how to read this form ?

Please HELP !!

Like | Dislike | Share | Posted: Fri, 02/12/2010 - 11:36 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I think i should use schedule d but there is no examples if no exemption as i only lived old house 1 1/2 years- all examples are if you qualify-- how do schedule d.
i bought a house in nov/2006 but couldnt get rid of old house-filed chapt 7 bankruptcy-aug11,2009--bank finally forclosed-march25,2010,sale june28,2010
box1= aug4/2010 (-thats wrong they can use acquisition date) box 2=46k, box4=65.5k box5=no
on my 2008 state return for 2007 i said i was a full time resident of new house state so that means my primary home was only approx 1yr and half of the 5 years- right? is there some way still claim old house primary?

i cant remember if received a 1099 on the chapt7 but in any case did not put it on my return last year for 2009 did not itemize and felt it didnt matter

i cant find what forms to use when not liable and box4 is greater than 2.
also i dont know what to put as cost as i bought the house from private indiv and than [url=http://www.mortgagefit.com/refinance.html]refinance[/url] and then loan modification in jan 200746.8k the only improvments was garage door and new roof and 10k in windows that i filed bankruptcy on and they didnt repossess.

Like | Dislike | Share | Posted: Sun, 02/06/2011 - 11:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Forgive me... even after reading all the postings. What lines do I fill out on form 982 and what do I put in for response.

Like | Dislike | Share | Posted: Sun, 02/07/2010 - 08:36 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi I short sold my home I lived in for 15yrs for less than what was owed on it with the mortgage company accepting the amount offered .Now I've received a 1099c form and I don't know what this is or what I need to do and if I have to pay something.please help

Like | Dislike | Share | Posted: Fri, 01/11/2013 - 20:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We filed bankruptcy in 2010 but did not surrender our primary residence and were able to keep it. Then, in 2012 we went ahead and foreclosed anyway on our home. Our attourney says we owe taxes for a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] loan on this property from years prior, which we used to pay off consumer debt. Is this true? I live in California.

Like | Dislike | Share | Posted: Wed, 01/09/2013 - 10:15 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Unless you receive the 1099c form, you won't be liable for paying taxes. The lender will send you the 1099c form if he has forgiven your debts. If you're liable for paying off the deficient balance resulting from the sale of the property, then you won't have to pay any taxes regarding that debt.

Like | Dislike | Share | Posted: Sun, 02/27/2011 - 20:54

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Should I include the box 2 or box 4 of the 1099A in my total income .
What other forms do I need to submit?
Should I or not include in the total income for 2010

Like | Dislike | Share | Posted: Wed, 02/23/2011 - 06:40 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mr G,

If your property was sold for less than what you owed and your lender has sent you a 1099A form for the deficiency, you will have to report it to the IRS. However, the 1099A form does not suggest that the lender has forgiven the debt. He can still come after you to collect the deficient amount. The 1099A form simply means that the lender acquired your property and was unable to recover the mortgage in full by selling the house. If the lender cancels this deficient amount, he will send you a 1099C form and if you receive that, you will be subject to pay taxes on the cancelled debt amount.

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 21:14

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