Ask Experts Questions for FREE Help !
Ask
    ezmoney's Avatar
    ezmoney Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 4, 2011, 05:17 PM
    1099-A
    Hello,

    Help me understand this... I owed $482,000(Dec 09)they foreclosed Jan 2010 - It sold in Dec 2010 for $335,000. I got a 1099A for $482,000. What does that mean? Under the new Tax Law passed am I taxed on
    The difference or Is it forgiven? My 1099A say "abandonment'
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
    Uber Member
    		  
    #2

    Feb 4, 2011, 05:57 PM

    Forgiven doesn't meen obligation free... you had a debt you defaulted on... their "forgiving" the loan creates an IRS recognised phantom income to you... thats taxible as income. Legal debts don't disappear without SOMEONE getting the tax bill.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 18, 2011, 11:56 PM
    If this house was your primary home, there IS a process by which you can be forgiven the tax debt on the phantom income that Smoothy describes.

    However, you have to qualify, and the criteria is complex, so you should get professional tax help.

    Finally, the income is NOT recognized by the IRS unless a Form 1099-C is issued.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What is the IRS fine ($) for not 1099 getting a 1099 from a contractor? [ 3 Answers ]

I know a 1099 is needed for anyone paid over $600, but what if, for argument sake, one cannot 1099 the contractor because they refuse or don't have a SS#, etc. What are the penalties for this beside not being able to expense the transaction? What does the IRS do?

Can 1099-A be used on Form 982 or MUST it be 1099-C [ 1 Answers ]

Please help! There are conflicting answers even within this forum. I have received a 1099-A for a home I foreclosed on in 2008. On my 1099-A Box 2: Principle Outstanding balance is less that Box 4: FMV. Here is what I would like clarity on please: 1. How do I handle or What form do I use...

1099 income with no 1099 form [ 1 Answers ]

How do I file my taxes with out a 1099 form? How can I get one? Thank you

1099-g & 1099-int [ 1 Answers ]

Hi, I am a citizen of India and filing my taxes as a non-resident for 2006. 1.> I received 1099-G of my 2005 state tax refund. In my 2005 federal tax return I had used the standard deduction on line 11 of 1040NR-EZ i.e "Itemized deductions" line since it is entitled to students from India. Is...

1099-G and 1099-INT, filing as a non-resident [ 1 Answers ]

Hi, I am a citizen of India and filing my taxes as a non-resident for 2006. 1.> I received 1099-G of my 2005 state tax refund. In my 2005 federal tax return I had used the standard deduction on line 11 of 1040NR-EZ i.e "Itemized deductions" line since it is entitled to students from India. Is...

View more questions Search