Posted on: 16th Apr, 2009 10:25 am
Our home was forclosed was sent a 1099A outstanding balance218,892 65 fmv 137,735.37 box 5 is marked yes are we responsible for the difference?
Hi Guest!
Welcome to forums!
As far as I know, when a property is foreclosed, you'll have to pay the deficient amount resulting from the sale of the property. However, if the lender forgives the deficient amount, then he'll send you a 1099-c form. You can also consult a tax adviser and take his opinion in this issue.
Sussane
Welcome to forums!
As far as I know, when a property is foreclosed, you'll have to pay the deficient amount resulting from the sale of the property. However, if the lender forgives the deficient amount, then he'll send you a 1099-c form. You can also consult a tax adviser and take his opinion in this issue.
Sussane
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1099-A is an informational only form the lender has to file that indicates their loss to the IRS, where a 1099-C would be possibly income to you (debt less FMV would be your income) unless you were insolvent, filed BK, and another confusing idea is whether your state allows deficiency judgments- if not, I don't think a 1099-C would affect you.
1099-A is an informational only form the lender has to file that indicates their loss to the IRS, where a 1099-C would be possibly income to you (debt less FMV would be your income) unless you were insolvent, filed BK, and another confusing idea is whether your state allows deficiency judgments- if not, I don't think a 1099-C would affect you.