1099a

[johnalan]

What is the name of your state? GA. I filed a chapter 7 BK and surrendered my home. It has since been foreclosed on and discharged. I just received a 1099A, which is an acquisition and or abandoment of property form filed by the mortgage company. The principle balance listed was 109,000.00 and the FMV listed was 119,000.00. Do I need to file any forms when I file my income tax return? I figured they might file a 1099C, any ideas why they didn't? Also, I have read where a creditor listed and discharged in BK will send the IRS a 1099C but not to the debtor. Is there a way to find out what the IRS has gotten and/or is there a to be proactive in filing to show I BK. Thanks

[Ladynred]

Bankruptcy doesn't 'cancel' your debt, it removes your liability for it and prevents all creditors from attmepting to collect. A 1099-C is 'cancellation of debt income'. Since bankruptcy proves you to be insolvent, even if you did get a 1099-c, it would not have to be reported to the IRS as income BECAUSE you were insolvent- the bankruptcy.

I had 1099-A issued to me after the foreclosure on my house in 2000..but it took them a YEAR to sell it at auction. Anyway, on the 1099A it showed the amount of the principle balance of 68K (box 2), and a FMV of 87K (box 4). The house sold for 68K. On the back of the 1099A form, its says if box 4 is less than box 2, there may be cancellation of debt income. Obviously that was not the case for me, nor does it appear to be for you.

Since the 1099-A comes only as a copy for YOU, there's nothing to send to the IRS on it. I have the form in the file with my 2000 return. There was no cancellation of debt, and there certainly wasn't any income after all the sale fees, interests, and legal fees were tacked on.

I consulted with a friend of mine who owns an H&R Block office and was assured that I did not need to do anything with the 1099-A except to keep it in my records.