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Information on Foreclosure and 1099-A - The Bills.com Blog
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Information on Foreclosure and 1099-A
Friday, Mar 13, 2009
Question: My home was foreclosed on and I received a 1099-A showing the fair market value was MORE than the balance of principal outstanding. Am I entitled to get this difference refunded to me and how do I go about getting it if this is so? Thank you.
Answer: Generally speaking, the IRS treats a foreclosure as a home sale, with any forgiven debt treated as regular income. Reporting a gain or a loss on the sale/foreclosure will depend on whether you are personally liable for the debt (which is normally determined by state law where the property is located). There are exemptions and state laws to take into consideration as well, so you should consult with a qualified tax advisor or tax attorney in your state and
find out how they apply to your specific situation.
I will provide you with some links that should help educate you on foreclosure, taxes, and instructions on 1099-A forms. This may help you to head into your meeting with your tax advisor or attorney with some understanding of the basics involved.
To read an official IRS
I will provide you with some links that should help educate you on foreclosure, taxes, and instructions on 1099-A forms. This may help you to head into your meeting with your tax advisor or attorney with some understanding of the basics involved.
To read an official IRS
publication on foreclosure here .
The IRS also has a website with links to numerous articles on foreclosure: Check here .
For instructions on form 1099-A visit www.irs.gov .
I wish you the best of luck with this difficult situation and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
The IRS also has a website with links to numerous articles on foreclosure: Check here .
For instructions on form 1099-A visit www.irs.gov .
I wish you the best of luck with this difficult situation and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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