My husband and I had our home foreclosed on this year. We received a 1099-A form. I have researched this so much I don't know what to think and am looking for some help. The# 2 box and the # 4 box have the same amount. Does anyone know is the FMV what the house sold for? What do I have to claim? What do I not have to claim? ANY HELP WOULD BE GREATLY APPRECIATED! Thank you!:confused:

Generally, you receive Form 1099-A, Acquisition or Abandonment of Secured Property, from your lender. This form will have the information you need to determine the amount of your gain or loss and any ordinary income from cancellation of debt. You report profit and loss from the sale.

Sender completes this form as under:
Box 1. For an acquisition, enter the date you acquired the secured property.
Box 2. Enter the balance of the debt outstanding at the time the interest in the property was acquired or on the date you first knew or had reason to know that the property was abandoned. Include only unpaid principal on the original debt. Do not include accrued interest or foreclosure costs.
Box 4. For a foreclosure, execution, or similar sale, enter the FMV of the property. Generally, the gross foreclosure bid price is considered to be the FMV.

For more info read this:
Questions and Answers on Home Foreclosure and Debt Cancellation (http://www.irs.gov/newsroom/article/0,,id=174034,00.html)

Under a new law passed by Congress in December 2007, you can avoid paying any taxes on this Form 1099-A by filing Form 982 with your tax return.

This form can be downloaded from Internal Revenue Service (http://www.irs.gov), but it currently CANNOT be filed on-line, which means you will have to mail your return this year.

Yes, under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on
Internal Revenue Service (http://www.IRS.gov).

Excellent post, MukatA!

my husband and i had our home foreclosed on this year. We received a 1099-a form. I have researched this so much i don't know what to think and am looking for some help. The# 2 box and the # 4 box have the exact same amount. Does anyone know is the fmv what the house sold for? What do i have to claim? What do i not have to claim? Any help would be greatly appreciated! Thank you!:confused: the fmv is the amount the home sold for at the foreclosure. This is an abandonment form for your loses and the only one who has damages is you the holder in due course. What you can do is file the 1099oid for your loss and the IRS will send you a clearence number and then you file a 1040 and get every penny back 100% if you want you can take that money back pay off your mortgage and claim it again on a 1099oid it's for your damages from your trust with united states! Good luck!

Kathleen you are totally of base. You need to read publication 4691. There is more to the new law passed by Congress. There are Exclusions and all kinds of things to read. Not everyone will get out of paying the tax on their foreclosures. You must also be insolvent before the foreclosure. Make sure you hire a good tax guy or gal that knows the tax laws. The fair market value is what the bank appraised it for after the abandonment. Sometimes you have to dispute that especially in neighborhoods that are not doing very well.

Kathleen you are totally of base. You need to read publication 4691. There is more to the new law passed by Congress. There are Exclusions and all kinds of things to read. Not everyone will get out of paying the tax on their foreclosures. You must also be insolvent before the foreclosure. Make sure you hire a good tax guy or gal that knows the tax laws. The fair market value is what the bank appraised it for after the abandonment. Sometimes you have to dispute that especially in neighborhoods that are not doing very well.