[roadrunner6115]

I received a 1099 A for a foreclosed property and the principal balance box is much higher than the fair market value box. How will this affect my tax return and does this man that I owe anything?

[JudyKayTee]

Have you read this? "An IRS Form 1099-A is specifically provided to both tax authority and tax payer when a lender forecloses, repossesses, or has reason to suspect property is abandoned. Whether or not you receive either of these documents in a timely fashion, you must report cancellation of debt you have owed on your personal income tax. Acts of repossession, abandonment, or foreclosure are treated as a sale or exchange of property and the rules of gain or loss apply. Any income arising from the cancellation of a recourse debt is taxable whether or not property is returned or surrendered." Preparing Income Taxes - How Do I Report Information on a 1099-A?

Additional info (in plain English - a refreshing change) is available on that site.

[AtlantaTaxExpert]

Was the foreclosed property your primary home?

[roadrunner6115]

It is no longer my primary home. I live in AZ and did not have a second mortgage.

[AtlantaTaxExpert]

Then read the link provided by Judy Kay Tee and hire a tax professional to prepare your return.