Ask Experts Questions for FREE Help !
Ask
    tessy07's Avatar
    tessy07 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 2, 2009, 01:31 PM
    IRS penalty
    What is the penalty by IRS for receiving a form 1099-A for a mortgage loan on my property that went into foreclosure. The amount in box 4 is $189,320.53 is greater than the amount in box 2 which is $175,555.47
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Feb 3, 2009, 02:00 PM

    Box 2 shows the amount of mortgage principal that was outstanding on the abandoned home, and Box 4 is the fair market value of the property. Since Box 2 is less than Box 4, you consider Box 2 to be the selling price you received for the property. You can use this figure for determining whether you have a capital gain or loss and whether any capital gains is due.

    See Pub 523 for details, especially "Other Dispositions" on page 5:
    www.irs.gov/pub/irs-pdf/p523.pdf
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401 k tax penalty [ 2 Answers ]

I am 43 years old. In 2007 I took a hardship & removed $20,000 from my 401k. $2.000.00 was taken for taxes. I applied the rest in the purchase of my first new home. Now that it is time to file for tax season, will I have to pay taxes on the $18,000 that I used as a downpayment on a home loan? Does...

Besides the annuity penalty does the IRS add penalty for removing money [ 1 Answers ]

I am removimg money from my 401k plan & the annuity is assessing me a 8% penalty. Is the IRS going to penalize me as well or is it just categorized as ordinary income?

401K Penalty 10% [ 5 Answers ]

Hi, I lost my job of 30 years this year due to disability. I have been awarded Social Security Disability. Approved in Feb 06, first payment was August 06. I had 2 withdrawals from my 401K. The first had a 10% penalty, the 2nd did not because of the disability. My question is: Is the...

Penalty [ 5 Answers ]

I have a question on behalf my friend: He came to US in 2004 with F1 and work in OPT in tax year 2005. He should have filed 1040NR. However, he carelessly filed 1040 for resident alien and already got tax refund from IRS. In this case, should he file amendment? What will happen if he should...

Penalty [ 1 Answers ]

I was penalise for being on strike that was called by my union.according to the tayalor law,it is 2days pay for every day on strike.is there any way I can reduse my taxable income by the amount of penalty. I believe it is a cost of doing business(work).I don't know if my logic will fly.Or Where...

View more questions Search