1099-A and Foreclosure Question

[Gimpdiggity]

What is the name of your state (only U.S. law)? Michigan


Hello everyone. I've been reading as much as I can about this thing, but I'm still a bit confused.

I got a 1099-a in the mail today for a house that I had foreclosed on me in August. It was from a marriage that ended in divorce and I couldn't afford it on my own, blah blah blah...either way, it got foreclosed on.

One the form it has these things listed:

Box 2: Balance of Principal Outstanding, $110,721.87
Box 4: FMV of Property, $115,296.92
Box 5: Personally Liable, Yes

My question is, what exactly do I do with this form on my taxes?? The house was purchased at a price of $113,000 several years ago and about $5k was put into updated and improvements. From what I can tell, this means that my adjusted basis in the house is $118k.

However, everything that I have read about Form 982 seems to require that a 1099-c be issued, and I have not gotten one of those.

Can anyone explain to me what exactly the 1099-a is for?? Is it primarily for figuring out the gains/losses from the foreclosure?? Since I haven't been issued a 1099-c, am I still eligible for tax benefits of the Tax Relief Act from 2007?

I'm really confused and I don't know what to do. My tax program (HR Block) has places to input information from a 1099-c, but nothing at all about a 1099-a.

Thanks a bunch.
Jeff

[LdiJ]

Originally Posted by Gimpdiggity

What is the name of your state (only U.S. law)? Michigan


Hello everyone. I've been reading as much as I can about this thing, but I'm still a bit confused.

I got a 1099-a in the mail today for a house that I had foreclosed on me in August. It was from a marriage that ended in divorce and I couldn't afford it on my own, blah blah blah...either way, it got foreclosed on.

One the form it has these things listed:

Box 2: Balance of Principal Outstanding, $110,721.87
Box 4: FMV of Property, $115,296.92
Box 5: Personally Liable, Yes

My question is, what exactly do I do with this form on my taxes?? The house was purchased at a price of $113,000 several years ago and about $5k was put into updated and improvements. From what I can tell, this means that my adjusted basis in the house is $118k.

However, everything that I have read about Form 982 seems to require that a 1099-c be issued, and I have not gotten one of those.

Can anyone explain to me what exactly the 1099-a is for?? Is it primarily for figuring out the gains/losses from the foreclosure?? Since I haven't been issued a 1099-c, am I still eligible for tax benefits of the Tax Relief Act from 2007?

I'm really confused and I don't know what to do. My tax program (HR Block) has places to input information from a 1099-c, but nothing at all about a 1099-a.

Thanks a bunch.
Jeff

This is a year when you need a tax professional to deal with your tax return.

[Gimpdiggity]

Originally Posted by LdiJ

This is a year when you need a tax professional to deal with your tax return.

Am I at the very least correct in my determination that the 1099-A does NOT signal a forgiveness of debt from the bank??

[LdiJ]

Originally Posted by Gimpdiggity

Am I at the very least correct in my determination that the 1099-A does NOT signal a forgiveness of debt from the bank??

Correct, it does not yet signal a forgiveness of debt. It signals a "sale" of the residence back to the bank, and has to be dealt with as such.