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Form 1099a: How to file taxes after the foreclosure sale

Posted on: 29th Jan, 2009 08:28 pm
I had a foreclosure 5/08, I recieved a 1099-A form. The balance of principal outstanding is $148,000 and the fmv is $165,000 and I a liable for pepayment of debt. This was my primary residence. Will I have a gain or loss when I file my taxes?

Also, I did not receive a 1099-c but I believe because the fmv exceeds the outstanding principal I will not receive one.

Any help would be appreciated.

Thanks
The 1099a I got said abandonment of secured property. balance of principal outstanding 47,696.61. They have the fair market value of property as 57,344.00. I became disabled and have moved to a different state to be closer to children. Does this mean I will owe taxes?
Posted on: 02nd Feb, 2011 10:56 am
Hi!

Welcome to forums!

To Liz,

If your sister is responsible for the debts and if she has paid off the debts, then she won't be liable for any taxes.

To blkeyedsusan,

If the property was sold off at a lower price than what you owed as debts and if you paid off the deficient balance in full, then you won't remain liable for paying any taxes.

Feel free to ask if you've further queries.

Sussane
Posted on: 02nd Feb, 2011 08:52 pm
We got a 1099 in the mail but we didn't foreclose on our home we just refinanced with the same company! So my question is will the money that is on that form it's 5k will we have to pay that back? I am young first time home owner so not sure!
Posted on: 04th Feb, 2011 08:33 pm
I received a 1099A this tax of 2010. when and if the bank sells the house will I then received a 1099C in the year the bank sell the property?
Posted on: 05th Feb, 2011 08:48 pm
Hi!

Welcome to forums!

To JaneLle,

You have mentioned that your property did not go through foreclosure still you received the 1099 form. I will suggest you to contact a tax adviser and take his opinion before taking any further steps.

To Lissa,

If the bank forgives the deficient balance resulting from the property sale, then you will receive the 1099c form.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Feb, 2011 09:30 pm
i received a 1099 a for both my first and second mortgage in the state of texas. we were forclosed on november 2,2010 and my fmv is $68,075 and mu principle outstanding balance on the first loan is $114,932.90 and the second is $28,690.76 and fmv on that one shows $0. box 5 shows we are liable for repayment. i am very concerned,will we owe taxes to the irs? any info would be greatly appreciated as i am losing sleep over this. the house was under mine and my boyfriends name, will this also cause problems?
Posted on: 08th Feb, 2011 12:15 pm
Hi evhernandez,

You are liable for the payment of the deficient balance. If you pay off the deficient balance, you won't have to pay any taxes to the IRS.

Thanks
Posted on: 08th Feb, 2011 09:36 pm
I received a 1099a form. The bal is 124,000, the fair market value is 135,000. I only made 26,000 for the yr. My tax preparer says I have to report this as income causing me to owe 20.000 in taxes. Does this sound correct?
Posted on: 09th Feb, 2011 10:57 am
Welcome alice,

The profit that you make from the sale of the property will be considered as your income and you will be liable for taxes.
Posted on: 09th Feb, 2011 09:20 pm
I GOT A 1099 A in the mail and principal is 111,200 and fmv is 22,500 please tell me what this means. will I have to pay taxes on this?
Posted on: 12th Feb, 2011 06:25 am
This was my primary residence that was forclosed on and auctioned (400K) one day before the short sale (520K) was OK'd. I received a 1099a form on all three loans. If the first two loans were paid and the third was not paid anything (which in the short sale would have been paid 120K). Should I approach the 1st and 2nd to see if they would send a 1099c before I file my taxes?
Posted on: 13th Feb, 2011 11:25 am
In addition to the above the 1st sent a 1099a for loan amt 372,000 and FMV of 393,000 when the auction sale was for 400,000. the auction price not only paid the 1st but also the 2nd..so do i still have to pay taxes on the difference of 19,000. Also, can I file a 982 and not owe taxes on that amount even if I don't have a 1099c.
Posted on: 13th Feb, 2011 11:53 am
Welcome Jaybird,

The lenders will send you the 1099c form only when they forgive the deficient balance resulting from the property sale. Unless they forgive the debt, they won't send you the 1099c form.
Posted on: 13th Feb, 2011 09:07 pm
I just received a 1099A form for my primary residence I "abondoned" in March of 2008. The principal balance was $143,326.82 and according to the 1099A form the FMV was $110,000.00. I was personally liable. I believe the house then sold for $40,000 and was abandoned again and then sold for $17,000. What does this mean to me now. Do I need to file an a mended 2008 tax return? Should I dispute the FMV and if so how do I go about it? Thank you in advance for your advice.
Posted on: 29th Dec, 2011 03:08 pm
Hi DaCo!

Welcome to forums!

As you were personally liable, you need to pay off the deficient balance to the lender. Once you do so, you won't have to pay any taxes to the IRS. However, if the lender forgives the deficient balance, then you will receive a 1099c form and you will be liable for paying taxes for the forgiven debt. You need to contact a real estate attorney and he will help you in dealing with this matter.

Feel free to ask if you've further queries.

Sussane
Posted on: 29th Dec, 2011 11:51 pm
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