I received 1099A, the reason was abandonment of the property and the FMV is much lesser than the Original loan.Am I going to be tax on the difference which is about 250K.

I received 1099, the reason was abandonment of the property and the FMV is much lesser than the Original loan, Am I going to be tax on the difference which is about 250K?

Ruben:

First, to be taxed, you must received Form 1099-C to display the inputed income. If you do NOT get the Form 1099-C, make sure one was not submitted to the IRS without you getting a copy. If no Form 1099-C is forthcoming, you have nothing to worry about.

Second, if you get the Form 1099-C, you can get the tax on this income waived by filing Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness).

Finally, do NOT try to do this yourself. Get competent professional tax help.