Does anyone know what to do with the 1099A form when filing taxes. My home Foreclosed in 2007 (don't know exactly when) and I just received a 1099A Form from the Mortgage Co. and I haven't received another one yet for the 2nd loan/mortgage I had on the home. The first loan/mortgage was for $176,000 and they show Fair Market Value as $165,750 and the second loan/mortgage was for $44,000. So what does this all mean? Are they going to take my tax return that I was due to receive prior to getting this in the mail or will I possibly qualify for the Foreclosure 2007 Act that has been passed? My tax rep has been looking into this as well as my cousin who is a CPA and so far we are still all very confused. I do hope someone out there has a more CLEAR answer of what this form is & what it means. Thanks :)

I wish that I could help but that is the same problelm that we are having. I am sear of the infmormation also. I hope that someone will be able to answer our question.

I am with you both!! I hope we can find someone to help!!

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.

This is how the sender completes 1099-A:
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.

Okay so I know that I don't need to know how to fill out a 1099A, I am needing to know how to figure out what I have to claim based on the information that is on my 1099A. Can you add anything more to your first paragraph?

Same here. I need to know how to figure out what we are supposed to claim or whether it is a gain or a loss?? With all of the new laws and such we are confused.:confused:

Questions and Answers on Home Foreclosure and Debt Cancellation

All right, gang, here is the answer:

You need to file Form 892, which was just modified by the IRS.

SMarieHill:

Most tax software will NOT have this form on its list of forms, so you have to download it from the IRS webiste (Internal Revenue Service) and attach it to the return, which then must be mailed (no electronic filing).

Assuming you meet the criteria (it looks to me that you do), that should take care of the problem.

Can't find form 892

Sorry, go my numbers crossed. It is Form 982, which is at the link below:

http://www.irs.gov/pub/irs-pdf/f982.pdf

If is just a 1099a is just for keep for your records, it's not to be reported and don't make any diference on your income... the lender send this to any one, that has a personal property on the foreclosure process just for records...
So just relax, I got mine today, if they send a 1099c it's another thing is a debt forgiveness.

From 1099-A is the USA's way of telling you we do not police appraisers and banks when the banks lend you more than what a house is truly worth.
The diff between the loan and the "fair market value" has to be recognized as a gain that you have to pay tax on... ie you just got bend over.
God bless America...
I have one in hand for a client. FMV = 80k... apraiser and bank said it was worth 131k... fed tax = 10k st of Maine tax=5k... got a spare 15k hanging around?
There are jobs and we are hiring... just move to China.

I just received a 1099-A balance principal is 307,358 Fair Market Value states 328,517. Are you saying they will tax me on the difference?

I happen to know the house went up for auction and sold for, GET THIS, 170,00. By the way it was in immaculate condition.

Yes I was like many other Americans who was lied to and suckered into an interest only loan. We had foreclosure due to BAD LOAN,loss of job...

So does that work the other way as well? My 1099-A states:
FMV: $149,414.86
Loan: $142,646.86
If that's the case then it's not a gain it's a loss? That doesn't seem right.

Ok after some research here is what I found:
If your Loan Value was Less than your FMV you need to report the difference as a nondeductable loss.
If your FMV was lower than your loan amount then the Emergency Economic Stabilization Act of 2008 allows you to exclude the amount from your gross income if the property was your primary residence and the foreclosure or abandonment occurred between 2006 and 2013. It still has to be reported.
Publication 4681 has the proper forms and instructions although it gives no examples of my situation where I'm claiming the nondeductable loss.

What if you file chapter 7, and have been discharhed?

If the house was listed in the bankruptcy, then that issue MAY allow you to avoid any taxes due to inputed income.

OK but what do you do when they send you a 1099-a and you have no forgiveness ofr debt??

The Form 1099-A will not generated the imputed income and the resulting taxes; it is the Formn 1099-C that does that.

If you have no mechanism for debt forgiveness, then no taxes are owed, because you STILL must pay the debt.

File Form 1099-A, Acquisition or Abandonment of Secured Property, for each borrower if you lend money in connection with your trade or business and, in full or partial satisfaction of the debt, you acquire an interest in property that is security for the debt, or you have reason to know that the property has been abandoned. You need not be in the business of lending money to be subject to this reporting requirement. From January 2012 onwards, you can file form 1099 A with 1099online.com.