Posted on: 20th Feb, 2011 09:45 am
on form 1099-a box 4[9000.] fmv more than box 2.doi owe?that is 1st mortgage. 2nd mortgage owes 8,000. now am i responsible for that amount/
Hi Guest,
You need to check out the amount received by the lender after selling off the property. If the sale price of the property is lower than the principal balance owed by you, then you will be liable for paying the deficient balance. However, if the lender forgives the deficient balance, then it will be considered as your income by the IRS. Depending upon the Mortgage Debt Relief Act, you won't be liable to pay taxes on that amount.
Thanks
You need to check out the amount received by the lender after selling off the property. If the sale price of the property is lower than the principal balance owed by you, then you will be liable for paying the deficient balance. However, if the lender forgives the deficient balance, then it will be considered as your income by the IRS. Depending upon the Mortgage Debt Relief Act, you won't be liable to pay taxes on that amount.
Thanks