Posted on: 14th Feb, 2010 11:50 am
I am in possession of a 1099A. The fair market value of the property is higher than the principal outstanding and box 5 for the borrower being liable for repayemtnof the debt is checked no.
What exactly is a 1099A? Do I have to show any amounts on my tax return? Please help.
What exactly is a 1099A? Do I have to show any amounts on my tax return? Please help.
As far as I know, form 1099-A deals with the acquisition or abandonment of any secured Property. You need to contact a tax adviser and he will help you in filling out the tax form in a proper way.
Hi ned,
The lender sends you Form 1099A when they foreclose on your property. The form is for informational purpose and your lender is required to send this form to you as well as to the IRS. If the fair market value listed on the 1099A Form is more than the principal amount owed, you will not have to pay any taxes for discharge of your debts.
However, if the fair market value is less than the principal balance owed and the lender sends you a 1099C Form for cancellation of debt, you will owe taxes on the discharged debt. But you can avoid paying taxes on this amount if you have used the property as your principal residence.
The lender sends you Form 1099A when they foreclose on your property. The form is for informational purpose and your lender is required to send this form to you as well as to the IRS. If the fair market value listed on the 1099A Form is more than the principal amount owed, you will not have to pay any taxes for discharge of your debts.
However, if the fair market value is less than the principal balance owed and the lender sends you a 1099C Form for cancellation of debt, you will owe taxes on the discharged debt. But you can avoid paying taxes on this amount if you have used the property as your principal residence.
Can I file a 1099A on my student loans?
A tax adviser may be able to assist you better in this regard!! You should contact a tax adviser and take his opinion.