[wfktaxinfo]

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

[AtlantaTaxExpert]

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..