1099-A From Mortgage Company

[micbur]

What is the name of your state? GA

Received 1099-A from mortgage company after the foreclosure on our home. Shows outstanding loan balance of $417K and FMV of $337K. When we closed on our loan for the home the home and property appraised for $603K Is it reasonable to have a FMV so far below the appraised value? If the difference is considered taxable income can I dispute the FMV? This is a 6 bedroom 2 story country home (4,500sqft) with pool house sitting on 50 acres.....

 

[LdiJ]

What is the name of your state? GA

Received 1099-A from mortgage company after the foreclosure on our home. Shows outstanding loan balance of $417K and FMV of $337K. When we closed on our loan for the home the home and property appraised for $603K Is it reasonable to have a FMV so far below the appraised value? If the difference is considered taxable income can I dispute the FMV? This is a 6 bedroom 2 story country home (4,500sqft) with pool house sitting on 50 acres.....

Use a tax pro this year. The Mortgage Debt Relief Act of 2007 (which passed at the end of 2007) should/could eliminate any taxable income from cancellation of debt, but you really need a tax pro to assist you.