Posted on: 25th Feb, 2012 09:47 am
BR discharged spring 2011; investment property foreclosed on December 2011. Rec'd a 1099-A from bank showing principle balance of $154,186 and fair market value of $179,543. Box 5 is checked.
What do I need to file on my taxes for this if the balance was discharged?
Thanks.
What do I need to file on my taxes for this if the balance was discharged?
Thanks.
Hi BeachGuy,
As box 5 is checked, you will be liable for paying off the deficient balance resulting from the sale of the property. Once you pay the deficient balance resulting from the property sale, you won't be liable for paying any taxes to the IRS regarding that debt. However, you will have to attach that 1099a form when you file your taxes. You can contact a tax adviser and he will further assist you in this matter.
Thanks
As box 5 is checked, you will be liable for paying off the deficient balance resulting from the sale of the property. Once you pay the deficient balance resulting from the property sale, you won't be liable for paying any taxes to the IRS regarding that debt. However, you will have to attach that 1099a form when you file your taxes. You can contact a tax adviser and he will further assist you in this matter.
Thanks
Hi BeachGuy!
Welcome to forums!
I agree with James Hogg. If your bankruptcy filing had helped you in getting a discharge from that debt, then the lender can't come after you to collect the deficient balance resulting from the sale of the property. You won't be liable for the deficient balance. You should have a word with your bankruptcy attorney and your lender and try to sort out the matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I agree with James Hogg. If your bankruptcy filing had helped you in getting a discharge from that debt, then the lender can't come after you to collect the deficient balance resulting from the sale of the property. You won't be liable for the deficient balance. You should have a word with your bankruptcy attorney and your lender and try to sort out the matter.
Feel free to ask if you've further queries.
Sussane