Posted on: 17th Feb, 2009 06:53 pm
House was in deed of lieu and form 1099-A box 4 was appraised at 80,000. but box 2 balance of principal was 67,000. How will that effect tax this year?
Hi Guest,
If the lender had forgiven the deficient amount resulting from the sale of the property, then you should have received 1099-c form. On receiving the form, you would have to pay the taxes on the forgiven amount. But you have mentioned that you have received 1099 A form. 1099-A forms are issued in case of acquisition or abandonment of secured property. So did you cancel your deed in lieu?
Thanks
If the lender had forgiven the deficient amount resulting from the sale of the property, then you should have received 1099-c form. On receiving the form, you would have to pay the taxes on the forgiven amount. But you have mentioned that you have received 1099 A form. 1099-A forms are issued in case of acquisition or abandonment of secured property. So did you cancel your deed in lieu?
Thanks