I have 9 properties and I recently received 3 1099-A stating a balance amount due on the loan . For example, one of my condos had a balance of $130,000 and the FMV (Box 4) stated $145,000. I have County Records showing the Assessed Value of the property is $30,000.

Question: Why is the bank using $145,000 for the Fair Market Value, when the appraised and assess value of the property is really $30,000.

From a tax perspective, is it in my best interest to challenge the Fair Market Value due to the fact, the property has a lesser value that what is stated on the 1099-A.

Last, the properties in questions are being invested by the FBI for mortgage fraud by the developer.


As you can see, I need some asnwers and support

Thanks, wfktaxinfo

Tax assessed values are NEVER realistic, and are usually artificially low to keep property owners from screaming about high real estate taxes.

Now, if you have a recent professional appraisal that shows a more realistic FMV, then you can challenge the Box 4 FMV with the IRS. It will take a bit of time, but it is worth the effort due to the lower resulting income tax on the "shadow" income that the Form 1099-A shows..