Posted on: 20th Jan, 2008 07:43 am
I went through the deed in lieu process on my home instead of foreclosing. I just received a 1099-A form. In box 2 the balanace is $73,359.79 and in box 4 the amount is $73,000. Box 5 is check "yes" that I am personally liable for repayment. My understaing was that in doing the deed in lieu I was not liable for repayment. Should I get a lawyer?
I received a Form 1099A form from the lender after the property was sold. I was told by the bank that I must pay taxes on
it. I also filed bankruptcy at the same time. I am a 77 yr old retired person, single. Please advise me on this.
it. I also filed bankruptcy at the same time. I am a 77 yr old retired person, single. Please advise me on this.
Hi Lois,
You will have to check out whether or not you've received a 1099c form. If you have received the 1099c form, it means that the lender has forgiven your deficient balance resulting from the sale of the property. Then you will be responsible for paying the taxes to the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay taxes for the forgiven balance amount.
You will have to check out whether or not you've received a 1099c form. If you have received the 1099c form, it means that the lender has forgiven your deficient balance resulting from the sale of the property. Then you will be responsible for paying the taxes to the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay taxes for the forgiven balance amount.
OK....so we got a 1099-A for a vacation home (aka Wyndham Vacation Resorts - the WORST!) and the amount we OWE ($23,000) is less than the fair market value- ($35,000). Do I still have to pay tax on the $23,000?? I have absolutely nothing to show for it. We never even had the opportunity to sell this piece of crap for anywhere near fair market value!
Anyone have an answer??
Thanks!
Anyone have an answer??
Thanks!
Hi Barbrn,
As you owe less than the fair market value, you may not have to pay any taxes on it. If the property is sold off at the fair market value, then you may get back the excess amount.
As you owe less than the fair market value, you may not have to pay any taxes on it. If the property is sold off at the fair market value, then you may get back the excess amount.
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