1099-A Box 5 is blank

[jkman2000]

What is the name of your state (only U.S. law)?
My primary residence is in California. My investment property was in AZ state which is foreclosed on March 2010.

Received 1099 A (Acquisition or Abandonment of Secured Property) from 2nd lender for investment property. It has the following information.

Box 1 Date Acquired by Lender or Abandoned--- 03/16/10
Box 2 Balance of principle outstanding--- $ 80,069 .00
Box 4 Fair Market Value--- $ 108,500 .00
Box 5 Borrower was personally liable for payment of Debt --- Blank

Box 5 is blank, lender did not mention anything on this? Please help me what I should do and how can I file my 2010 tax return?What is the name of your state (only U.S. law)?

 

[davew128]

What happened when you either read your mortgage document and/or called the lender to ask them if you were personally liable?

 

[FlyingRon]

All the 1099-A indicates is the sale of the property. In the case of most foreclosures it doesn't indicate any taxable event to you. If the lender forgives the loan, they'll most likely also file a 1099-C. It doesn't have to be at the same time as the foreclosure.

Is this a loan subject to recourse?

 

[LdiJ]

All the 1099-A indicates is the sale of the property. In the case of most foreclosures it doesn't indicate any taxable event to you. If the lender forgives the loan, they'll most likely also file a 1099-C. It doesn't have to be at the same time as the foreclosure.

Is this a loan subject to recourse?

Because this was investment property, rather than a personal residence, I do think that he will need to go ahead and deal with the sale on his tax return, including depreciation recapture and any gain or loss.

However since this 1099A came from the second lender, he is going to need information from the first lender as well.

 

[jkman2000]

Because this was investment property, rather than a personal residence, I do think that he will need to go ahead and deal with the sale on his tax return, including depreciation recapture and any gain or loss.

However since this 1099A came from the second lender, he is going to need information from the first lender as well.

Thanks Ldij. I did not receive any thing from First lender. in other words I should not do any thing about this 1099 A on my 2010 tax return. If I do then what about IRS?

Or Can I call IRS and ask them about this?

 

[davew128]

The most important question has been asked and ignored twice now. IS THE LOAN RECOURSE OR NOT? If you fail to report SOMETHING on your tax return, you WILL get audited. WHAT you need to report is dependent on the answer to that question.

 

[jkman2000]

The most important question has been asked and ignored twice now. IS THE LOAN RECOURSE OR NOT? If you fail to report SOMETHING on your tax return, you WILL get audited. WHAT you need to report is dependent on the answer to that question.

Thanks Davew128, I am not sure whether my loan is recourse OR non-recourse but I think it should be recourse because we did refinanced on the investment property which is in AZ and got the second loan. I am living in CA. California rules are different than AZ. I am not sure 2nd lender will go as per CA rules or AZ rules.
Please advice on this.Thanks again.

 

[FlyingRon]

In Arizona, it doesn't matter whether it is investment property or not. It depends on the nature of the loan and the property. If it's purchase money loan for a one or two-family residential unit on 2.5 acres of land or less, it will be non-recourse. Individual residential condo units are considered to fall in this category. Are you posting under multiple ID's? This story sounds familiar.