Posted on: 26th Jan, 2011 03:54 pm
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.
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.
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.
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.
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. :/
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. :/
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
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
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
Hi Johnny,
Well, if you have problems understanding the form and completing it, then it will be better if you could get in touch with a tax adviser and take his opinion in this regard.
Thanks
Well, if you have problems understanding the form and completing it, then it will be better if you could get in touch with a tax adviser and take his opinion in this regard.
Thanks
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