Posted on: 24th Feb, 2011 03:14 pm
I have a 1st, 2nd and 3rd loan on primary property. The property was foreclosed on and sold. The sell paid in full the 1st and 2nd. However I got a 1099a from the 1st and the 3rd without either loan forgiving any of the debt. On the 1099a the box 2 (Debt) was less then box 4 (FMV). How do I determine what amount I will pay taxes on? Without any loan forgiveness can I still file a 982?
Hi Guest,
If the lenders have not forgiven the deficient balance resulting from the foreclosure, then it means that you're liable for paying off the deficient balance to the lender. If you pay off the deficient balance to the lender, you won't be liable for paying any taxes to the IRS regarding the loan.
If the lenders have not forgiven the deficient balance resulting from the foreclosure, then it means that you're liable for paying off the deficient balance to the lender. If you pay off the deficient balance to the lender, you won't be liable for paying any taxes to the IRS regarding the loan.