Posted on: 02nd Feb, 2010 07:16 pm
I'm not really understanding or maybe I'm not "getting" the answers given here so I would like to know if anyone knows about the 1099A. I've seen where people are posting that the FMV is higher than the Principal Outstanding. In my situation, the Balance of Principal Outstanding is higher. It's $250,128.64 and the FMV is listed as $250,000.00. Does this mean that I will owe back $128.64???? Do I have to file something because I'm not seeing anywhere on Turbo Tax where you would even enter a 1099A. I thought I was done with my taxes and I sent them in. I figured I would get nothing from my Mortgage company as in past years because there was not interest paid in the last year. Can someone help me.
Thanks so much!
Thanks so much!
Hi,
If the outstanding balance of the mortgage is higher than the sale price of the house at the foreclosure auction, there will be deficiency. You will have to pay taxes on this deficient amount. Thus, if the outstanding balance on the mortgage was $250,128.64 and the house was sold at the FMV of $250,000.00, you will be responsible for the taxes on the deficiency of $128.64.
If your lender has sent you a 1099A form for this deficiency you will have to report it on your taxes. However, if you used the property as your primary residence, you can claim exemption from taxes under the Mortgage Forgiveness Debt Relief Act of 2007, which exempts you from paying taxes on debts cancelled in the years 2007 through 2012.
If the outstanding balance of the mortgage is higher than the sale price of the house at the foreclosure auction, there will be deficiency. You will have to pay taxes on this deficient amount. Thus, if the outstanding balance on the mortgage was $250,128.64 and the house was sold at the FMV of $250,000.00, you will be responsible for the taxes on the deficiency of $128.64.
If your lender has sent you a 1099A form for this deficiency you will have to report it on your taxes. However, if you used the property as your primary residence, you can claim exemption from taxes under the Mortgage Forgiveness Debt Relief Act of 2007, which exempts you from paying taxes on debts cancelled in the years 2007 through 2012.
Chase forclosed on my home last year. We moved out (Chase gave us no options) in Sept. We received a 1099-A form showing the principal bal. as 250,015 and the fair market value as 136,000. there are two boxes on line 5 Was borrower personally liable for repayment of debt? Yes No. NO is checked. What does this mean? and will I have to pay taxes on the balance?
Hi dianeHarris!
Welcome to forums!
You were not liable for paying off the deficient balance resulting from the sale of the property. In such a situation, you will receive the 1099c form and the forgiven debt will be considered as your income. However, if it's your principal residence, then depending upon the Mortgage Debt Relief Act, you won't be liable for paying any taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You were not liable for paying off the deficient balance resulting from the sale of the property. In such a situation, you will receive the 1099c form and the forgiven debt will be considered as your income. However, if it's your principal residence, then depending upon the Mortgage Debt Relief Act, you won't be liable for paying any taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
My husband died in 2009. Our family home was in Illinois. I stopped paying on the house shortly after my husband died. I moved to Wisconsin to lived with my daughter in 2009. I received a 1099A for the property. This is my personal home so I know I have an exclusion on my federal tax retrun filed on the 982, but I file a Wisconsin Return for 2010 because I lived in Wisconsin for the entire year of 2010. According to Wisconsin law the "exclusion from gross income for income from discharge of indebteness on a qualified principal residence does not apply for Wisconsin." Does that mean that I would have to pay taxes to Wisconsin on the amount I excluded from income for federal tax return on my property located inIllinois.
Hi Gloria,
You should contact a local CPA and take his opinion in this matter. The CPA will guide you whether or not you'll have to pay taxes on it.
Thanks
You should contact a local CPA and take his opinion in this matter. The CPA will guide you whether or not you'll have to pay taxes on it.
Thanks
Just looking for an easy answer to this whole topic!!..I got a 1099-A in the mail and here is what it says..
Balance of Principal owed-37,445.00
Fair market value-58,936.00
So,does that mean I still the owe the money,or does the market value make up for it,since it is higher,than what is owed???
Balance of Principal owed-37,445.00
Fair market value-58,936.00
So,does that mean I still the owe the money,or does the market value make up for it,since it is higher,than what is owed???
Hi Fasteddie,
As you have received 1099A, you will have to check whether or not box 5 of the form is checked. If yes, then it means that the debt was not satisfied and you're personally liable for the payment of deficient balance to the mortgage lender.
As you have received 1099A, you will have to check whether or not box 5 of the form is checked. If yes, then it means that the debt was not satisfied and you're personally liable for the payment of deficient balance to the mortgage lender.