Posted on: 02nd Feb, 2010 05:15 pm
Recevied 1099a from our lender; we filed bankruptcy in 2008 and included our home; The 1099 lists the FMV higher than the balance outstanding and says we are not personally liable for the debt ... is there anything we need to report on our taxes? Or is this simply for informational purposes?
Hi Annie,
The lenders send the 1099A form as they are required to report the cancelled debt to the IRS. As you had included the home in bankruptcy, you are no longer responsible for the re-payment of this debt. Thus, you are not required to pay any taxes on the cancelled debt amount.
The lenders send the 1099A form as they are required to report the cancelled debt to the IRS. As you had included the home in bankruptcy, you are no longer responsible for the re-payment of this debt. Thus, you are not required to pay any taxes on the cancelled debt amount.