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Wrong fair market value on 1099-A

Can I go ahead and file my taxes while I clear up an incorrect fair market value on a 1099-A form from a lender? The property sold for $290,000 and the fair market value was listed at $475,500. The principal amount outstanding is $405,000.

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

Hi confused,

If the 1099A form has inaccurate information given, you need to contact the IRS to rectify the error. You can also contact your lender since they sent you the 1099A form. If the fair market value of the property was less than the outstanding balance on the loan, you will be liable to pay tax on the difference. Then the lender will send you a 1099C form and you will have to report the income from the discharged debt. But if you used the property as your primary residence, you can claim exemption from paying taxes on this discharged debt under the Mortgage Forgiveness Debt Relief Act, 2007.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:26 | Post subject:

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

I received 2 1099a forms from Bank of America for the same property with 2 diffent FMV listed. I have tried for 3 weeks to get BoA to correct to no avail. Any suggestions are welcome

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:26 | Post subject:

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

Hi Gregg,

You should contact your lender and somehow negotiate with him to rectify the matter. There is hardly anything to do unless they rectify the matter.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:26 | Post subject:

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