[nataliemon]

I need your help! I received a 1099A for a rental property in CA in which states the following information:
Loan Balance: $420,000, FMV listed: $472,918, Were you personally liable for the loan: Yes,
Date of lenders acquisition or knowledge of abandement: 7/26/10
Now, I am a bit confused of where the lender got 7/26/10, not sure if that even matters at this point.
However, according to an MLS print out, the property was sold on 12/25/10 for $159,900.
How should it reflect on Schedule D on my taxes? I seem to owe approx. $14K to IRS ;( Thank you!

[ebaines]

I don't see how you came up with the $14K figure - please clarify.

The 1009A form is solely for your information. You do not need to report anything to the IRS at this time. What the form is saying is that the bank forgave your loan of $420K in exchange for taking the property which was worth $472K. So in essence the bank can out ahead on this deal. If it had been the other way around - if the loan had been larger than the FMV, then the difference would be considered as income to you (loan forgiveness), and you would have to report it on your tax return (unless you meet one of the exceptions, which I won't go into here). But then the bank would have sent you a 1099C, not a 1099A. So I coclude that you have nothing to report.

But I'm curious - did a property whose FMV was determined to be $472K really sell on the market for only $159K? Or is that a typo?