Posted on: 25th Mar, 2009 06:38 pm
the loan amount was 900,000, the suv was 1,000,000, but I know that the bank sold the house for 500,000...am I going to be responsible for the difference in the loan amount and the sales amount...will they issue a 1099-C showing this difference
Hi kristinwajda!
Welcome to forums!
If the deficient amount resulting from the sale of the property is forgiven by the lender, then you would receive a 1099-c form. If the lender asks you to pay the deficient amount, then you will not receive a 1099-c.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If the deficient amount resulting from the sale of the property is forgiven by the lender, then you would receive a 1099-c form. If the lender asks you to pay the deficient amount, then you will not receive a 1099-c.
Feel free to ask if you have further queries.
Sussane
What do we do with the 1099 A if the property was not a principle residence, it was a spec home...and the fmv they posted on the 1099a is much higher than what the bank sold the house for...whay did they post the fmv so high
I guess, your property was short sold. The fmv of the property was higher but the lender was able to sell it for a lower rate. So you owe a deficienat amount from the sale of the property. As far as the 1099A is concerned, it would be better if you could consult a tax adviser regarding this.
Hi
I also believe that the property went through a short sale where the lender had to sell the house at a price that was much lower than the fair market value. The 1099 A form is in connection with the deficient amount due to the short sale. Since this is not your primary residence I don't think you can avail any tax credit for this deficient amount. Consulting a tax consultant is a good option for you.
I also believe that the property went through a short sale where the lender had to sell the house at a price that was much lower than the fair market value. The 1099 A form is in connection with the deficient amount due to the short sale. Since this is not your primary residence I don't think you can avail any tax credit for this deficient amount. Consulting a tax consultant is a good option for you.