Posted on: 12th Feb, 2011 06:30 pm
We received a 1099a today. Box one shows 161639.83. Box 4 shows 64000. Box 5 is marked no. We foreclosed on this property in August 2010. We included this property in our bankruptcy in 2008. This was an investment property.what do I do with this on my taxes . Thanks. Please advise.
Hi michapete,
After bankruptcy filing, your mortgage got discharged and you won't have to pay the deficient balance to the lender. Thus, the forgiven balance will be considered as your income and you will be liable for paying taxes on the mortgage debt.
Thanks,
Jerry
After bankruptcy filing, your mortgage got discharged and you won't have to pay the deficient balance to the lender. Thus, the forgiven balance will be considered as your income and you will be liable for paying taxes on the mortgage debt.
Thanks,
Jerry