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Wrong fair market value on 1099-A

Posted on: 05th Feb, 2010 11:34 am
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.
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.
Posted on: 11th Feb, 2010 10:17 pm
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
Posted on: 15th Feb, 2011 10:28 am
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
Posted on: 15th Feb, 2011 08:15 pm
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