Posted on: 13th Sep, 2010 11:54 am
1099-A received (No 1099-C)... From everything I have read the FMV is what the lender sold the house for. Is this correct? The FMV #4 was more than what we owed (#2) by $9,997.24. They did check YES to box 5. Have read alot and still confused about what to do for IRS purposes. One would think I they were able to sell for more than we owed it was a benefit for them. We were in constant contact with them over the course of trying to sell. So, question still remains 1099-A...what to do in regards to tax filing?
Hi sheila!
Welcome to forums!
I guess your lender has not forgiven the deficient balance resulting from the sale of the property. As the dues have not been forgiven, you will be considered liable for paying the balance amount. Thus, if you pay down the balance amount, you won't be responsible for the IRS taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I guess your lender has not forgiven the deficient balance resulting from the sale of the property. As the dues have not been forgiven, you will be considered liable for paying the balance amount. Thus, if you pay down the balance amount, you won't be responsible for the IRS taxes.
Feel free to ask if you've further queries.
Sussane