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Company Loan Type APR Est. Pmt.

1099 a need help with this please

Posted on: 22nd Mar, 2010 02:26 pm
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
To tonester,

" box 2:182,520.36
box 3: 100.00"

The box 2 on the 1099A Form shows the principal balance you owe and the box number 4 shows the fair market value (FMV) of the property. I'm not sure why the fair market value of your property is showing in the box no. 3. As far as the fair market value of the property is concerned, it seems to be a mistake on the part of your mortgage company that they listed the price at just $100. You should talk to the lender about this fair market value.

Since the property was your primary residence, you do not have to pay any tax on the deficient amount and you can fill out Form 982 to claim this exemption under the Mortgage Forgiveness Debt Relief Act of 2007.

Thanks,

Jerry
Posted on: 23rd Mar, 2010 02:28 am
What if it was an investment property? Do need to fill out 982 or is another sheet I need to fill out? Thank you
Posted on: 22nd Apr, 2010 11:49 am
Hi Roger,

The discharged debts on an investment property are not subject to any exemption from taxes. Had the property been used as a principal residence, you could have claimed exemption from taxes under the Mortgage Forgiveness Debt Relief Act of 2007.

Thus, if it was an investment property you need to pay taxes on the discharged debt. Did you file bankruptcy? If you filed bankruptcy and the debt was discharged, you do not have to pay any tax and you can claim the exemption by filling out Form 982.
Posted on: 22nd Apr, 2010 11:39 pm
we have filed bankruptcy on our home mortgage, our morgage company has asked us to sign a deed in lieu of foreclosure so that they wont have to go through foreclosure expenses. is this something we should do ? i dont want to get taken advantage of. they claim this will help our credit report because it will not show a foreclosure?
Posted on: 11th Feb, 2011 05:35 am
Hi roelfke,

You should go for deed in lieu of foreclosure. You won't be liable for paying off the deficient balance resulting from property sale. Thus, it will be a good option to consider.

Thanks
Posted on: 11th Feb, 2011 09:29 pm
DON'T GIVE YOUR HOME TO THE BANK. MAKE THEM FIGHT FOR IT AND CONTEST THE FORECLOSURE. YOU MAY GET YOUR PROPERTY BACK.
THERE ARE MULTIPLE FRAUD ACTIONS COMMITED BY ALL BANKS REGARDING FORECLOSURE PROCEEDINGS EVERY DAY.
Posted on: 24th Feb, 2011 07:13 pm
I understand that foreclosed homes used as primary residences are exempt from being taxed under the Mortgage Forgiveness Debt Relief Act of 2007, but what if the property was initially primary residence and then later became an investment property?
Posted on: 14th Mar, 2012 01:38 pm
Hi Sarah!

Welcome to forums!

If the property has now become an investment property and was foreclosed by the lender, then you won't be able to take advantage of Mortgage Forgiveness Debt Relief Act of 2007.

Feel free to ask if you've further queries.

Sussane
Posted on: 15th Mar, 2012 12:21 am
What figure goes in line 2 on the IRS form 982. Is it the FMV or principle balace on the 1099-a
Posted on: 17th Feb, 2013 02:44 pm
Hi Guest,

What form are you exactly speaking about? Form 982 or form 1099a? Please post your query clearly so that members here can give you some suggestions in this regard.

Thanks
Posted on: 17th Feb, 2013 10:59 pm
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