[3boysljj]

I have received 1099A forms for my 1st mortgage & 2nd mortgage (same bank).
This was my primary home which was foreclosed November 2009.
I also filed bankruptcy 12/31/2009.
I have read responses saying this is informational only, no filing required & I've read where you have to report as a sale, etc.
How do I file the 1099A forms I received on my taxes?

[ebaines]

You do not need to report anything from the 1099-A on your taxes UNLESS you have a taxable gain (which is unlikely, but possible). Since you filed for bankruptcy you do not have to report forgiveness of debt as income - that's why the bank sent you a 1099-A instead of 1099-C forms. So the only other issue is whether to report the sale. Because this was your primary home, you would only need to report the sale if both the following are true:

(a) You made a gain on the sale, meaning that the amount of outstanding debt listed on the two 1099-A's is greater than your cost basis in the property, and

(b) You have not lived in this home for at least 2 of the previous five years - which means you do not qualify for the exemption from reporting the sale of a primary residence. If you have lived there for 2 out of 5 years, you are automatically exempt from reporting any gain up to $500K.

If both (a) and (b) are true, then you must report the gain on the home on Schedule D as a capital gain.

[3boysljj]

Thanks for your information. Here's the deal, it was our primary home which we lived in for 12 years & purchased for $117,000. We did put a down payment but I don't remember how much that was.

1st 1099A: principal balance $98,796.18 w/ FMV $109,700
2nd 1099A: principal balance $54,219.20 w/ FMV $109,700

We made improvements to the home that well exceed what the home was purchased for. Our tax value on the home $174,560 which we have been paying taxes on that amount for years.
Now, February 2010 the bank ended up selling the house for $150,000.

So, to me it does not look like I have a gain. (a) I'm not sure about, which w/ the information given above maybe u can see if I have a gain (b) not true; lived in 12 years.

Would I have to file that exemption form if u c no gain? Or nothing needs to filed regarding the 1099A forms received.

Again, thank you----You've been helpful & it's greatly appreciated.

[ebaines]

You have a gain only to the extent that $98,796.18 + $54,219.20 = $153,015.38 exceeds your cost basis. You cost basis is your purchase price of $117,000 plus the cost of capital improvements you have made over the years. So the most your capital gain could be is $153,015.28 - $117,000 = $36,015.28. But since this has been your principal residence for more that 2 years, and your gain is certainly less than $500K, you do NOT need to report the sale. There are no forms to fill out - the exemption is automatic.

For reference see: Publication 523 (2009), Selling Your Home

[3boysljj]

Thank u ebaines