Form 1099-A

[loancorp]

I live in CA.
Hello. I had investment property in Florida which was foreclosed on me in 2008
now i got 1099-A form the bank. Balance of the principal is 174k and Fair Market Value or the amount bank bought back the house is 112k.
Box 5 is checked yes that i am responsible for the repayment of the debt.
My question is do i have to pay taxes on the difference?
and my second question is should I consider is the matter solved ro the bank
might still come after me for the deficit.

Thanks in advance.What is the name of your state (only U.S. law)?

 

[LdiJ]

I live in CA.
Hello. I had investment property in Florida which was foreclosed on me in 2008
now i got 1099-A form the bank. Balance of the principal is 174k and Fair Market Value or the amount bank bought back the house is 112k.
Box 5 is checked yes that i am responsible for the repayment of the debt.
My question is do i have to pay taxes on the difference?
and my second question is should I consider is the matter solved ro the bank
might still come after me for the deficit.

Thanks in advance.What is the name of your state (only U.S. law)?

You really need a tax professional to help you with this one. This may or may not be a taxable event for you on several levels, and its complicated.