Posted on: 08th Feb, 2011 09:23 am
Our house was foreclosed on in May 2010. We have not filed bankruptcy yet, likely in March 2011. We just received on February 2 Form 1099-A.
Box 2 amount is 215,175, Box 4 is 226,146. Box 5 is checked no. The house as far as I know hasn't been sold yet and the price they are asking is probably 150,000 or less. I am confused on what this all means especially since we have not filed for bankruptcy yet. I usually use Turbo Tax but I am not sure if I should do this on my own. Also will I get a 1099-C ? Also what if the house was refinanced original cost 125,000 7 years ago?. Thank you.
Box 2 amount is 215,175, Box 4 is 226,146. Box 5 is checked no. The house as far as I know hasn't been sold yet and the price they are asking is probably 150,000 or less. I am confused on what this all means especially since we have not filed for bankruptcy yet. I usually use Turbo Tax but I am not sure if I should do this on my own. Also will I get a 1099-C ? Also what if the house was refinanced original cost 125,000 7 years ago?. Thank you.
Hi danieleedotson,
I guess the lender has forgiven the deficient balance resulting from the sale of the property. In such a situation, you'll receive the 1099c form as well and you will be responsible for paying taxes on the forgiven debt if it is not your principal residence.
Thanks
I guess the lender has forgiven the deficient balance resulting from the sale of the property. In such a situation, you'll receive the 1099c form as well and you will be responsible for paying taxes on the forgiven debt if it is not your principal residence.
Thanks