Discussion:Form 1099-A
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Discussion Forum Index --> Tax Questions --> Form 1099-A
| 13 September 2006 | |
| Encountered my first 1099-A (Acquisition or abandonment of secured property). I am a little unsure how to treat this transaction. My first instinct is to treat it the same as a
1099-C (Cancellation of debt)but taking into account the debt amount and the FMV of the property abandoned. The balance of principal outstanding was $7,840.72 and the FMV of property was $13,150.00. The borrower was personally liable for repayment of the debt. Thanks. | |
| 13 September 2006 | |
| In your case, if the adjusted basis of the property is more than the cancelled debt, there is no income. If cancelled debt is more than adjusted basis, then there is income. Perhaps some one else can verify or clarify. Sec. 108 See Page 5 for foreclosure worksheet. Foreclosure worksheet. | |
| 14 September 2006 | |
| The property was sold for $7,840.72. Figure the gain or loss accordingly. | |
| 14 September 2006 | |
| Also, you should check with the lender to see if the client is eligible to particpate in the proceeds of any auctions or foreclosure sales. This would also add to his gain. Some lenders are not very helpful in this area, and you may have to result to reading the original contract. | |
FEDEXMANDAN (talk|edits) said: | 4 April 2007 |
| FEDEXMANDAN SAID:I HAVE A FORM 1099-A ACQUISITION OR ABANDONMENT OF SECURED PROPERTY. IT LOOKS LIKE I FOUND MY ANSWER, BUT JUST TO ASK, BALANCE OF PRINCIPAL OUTSTANDING IS $116,202.20, AND
FAIR MARKET VALUE OF PROPERTY IS $137,419.24. BORROWER WAS LIABLE FOR REPAYMENT OF DEBT. SOLOMON SAID THERE IS NO INCOME, AM I CORRECT NO INCOME TO REPORT ON THIS? | |
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