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My investment property foreclosed on 12/09/2009 in AZ. Now my 2nd lender sent me 1099 A (Acquisition or Abandonment of Secured Property) has following information
Box 1 Date Acquired by Lender or Abandoned 03/16/10
Box 2 Balance of principle outstanding 80,069 .00
Box 4 Fair Market Value 108,500 .00
Box 5 Borrower was personally liable for payment of Debt

Do I need to pay tax on this? How can I file my 2010 tax return?

Any Help will be appreciable.

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

I just received Acquisition or Abandonment of Secured Property
which says the following:
box 2 $228,488.81
fair market value $73,000.00
this is in Lancaster, CA and this was my investment property;
foreclosed 7/20/12 and they let the tenant remain on property.

Will I be liable for any taxes on this? The property was seriously upside down? I only have my primary residence now and no other properties.

Like | Dislike | Share | Posted: Mon, 01/28/2013 - 16:37 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Maria!

Welcome to forums!

If the lender forgives the deficient balance resulting from the sale of the property, then you may be liable for paying taxes. But as the Mortgage Debt Relief Act has been extended, things may be different for you and you may not be liable for the taxes.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 01/28/2013 - 22:39 | Post subject:

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

Just received a 1099-a for a housei lost, box 2 and box 4 are same amount box five is checked, what am I liable for , ie taxes, or monies

Like | Dislike | Share | Posted: Sat, 02/02/2013 - 16:12 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

If the fair market value and the principal owed is same and if the property has been sold off for the same amount, then you're not liable for paying anything.

Like | Dislike | Share | Posted: Sun, 02/03/2013 - 23:27 | Post subject:

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

I received a 1099-A for a mortgage foreclosure.
2. $67,036.53
4. $34,400.00
5. checked

I've read your responses to the questions above, but I guess I'm still confused. If the box 5 is checked, then we WON'T be liable to pay taxes on the difference? But if they are saying we are still "liable" for the debt, how does that work? Will they bill us for that, I guess I don't get it.

Thanks
Confused after leaving a crime ridden neighborhood to protect kids. :/

Like | Dislike | Share | Posted: Wed, 02/06/2013 - 13:39 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ellen!

Welcome to forums!

If your deficient balance has been forgiven by the lender, then you will receive a 1099c form from the lender along with 1099a. As you have received only a 1099a form and the box 5 is checked, I guess you're liable for paying the deficient balance to the lender.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 02/06/2013 - 21:44 | Post subject:

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

2012 Box 2: 244,112.98 box 4: 272,992.00 box 5 checked off. Foreclosure due to divorce of house sold in sheriff sale. Prop value was at 190,000 and sold in the 270k range, which I assume is box 4. How will this play out as I'm trying to understand what you've stated from prior questions. Thanks

Like | Dislike | Share | Posted: Sat, 02/16/2013 - 14:12 | Post subject:

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