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    cal_kid999's Avatar
    cal_kid999 Posts: 3, Reputation: 1
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    #1

    Feb 13, 2012, 11:53 PM
    1099-A Question... HELP!
    Hello:

    Just found this site and would LOVE some help.

    Got two 1099-A's. One for the primary loan, one for the second loan we HAD to agree to when we got the loan. Here are the details:

    Form 1
    Box 1: 06-10-11
    Box 2: 186, 738 (Balance)
    Box 4: 194, 985 (FMV)
    Box 5: "X" in the box

    Form 2
    Box 1: 06-10-11
    Box 2: 25,000 (Balance)
    Box 4: 194, 985 (FMV)
    Box 5: "X" in the box

    Give it to me straight... I can take it... I think. Thank you for any help.
    cal_kid999's Avatar
    cal_kid999 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Feb 14, 2012, 12:43 AM
    By the way, this loan was in California.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Feb 14, 2012, 04:23 AM
    Loan foregiveness may be taxable to you, but not if you were insolvent, or had declared bankruptcy, or if the property was your primary residence. Read IRS pub 4681: http://www.irs.gov/pub/irs-pdf/p4681.pdf especially page 8. You may have to file form 982 with your return to claim the exemption.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 15, 2012, 03:43 PM
    Further piece of advice: get professional tax help on this.

    Most laymen do not know enough to properly file Form 982, and it is beyond the grasp of some of the tax professional out there as well.
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