1099-a

[Johnlaurajake]

What is the name of your state? Ohio

Hello,

In 2006 our bankrupcy was discharged. *Chapter 7 old laws

I received the 1099-A for th house as we didn't stay in (we divorced) and we relinquished as part of the B7.

Anyway, on the form Box 2 - Balance of Principal 76,066.35
Box 4 - Fair Market Value 98,963.33
Box 5 - Was borrower personally liable for repayment of the debt - NO


So I read publication 544 and I still can't find where these numbers are to be represented on my 1040 and if/how my return is affected by them.

Can you advise?

 

[LdiJ]

What is the name of your state? Ohio

Hello,

In 2006 our bankrupcy was discharged. *Chapter 7 old laws

I received the 1099-A for th house as we didn't stay in (we divorced) and we relinquished as part of the B7.

Anyway, on the form Box 2 - Balance of Principal 76,066.35
Box 4 - Fair Market Value 98,963.33
Box 5 - Was borrower personally liable for repayment of the debt - NO


So I read publication 544 and I still can't find where these numbers are to be represented on my 1040 and if/how my return is affected by them.

Can you advise?

Why in the world didn't you sell the house instead of letting it go back to the bank? Even with realtor fees and selling costs you could have netted something.

In any case, your bankruptcy absolves you from any tax liability related to the house. However, even without your bankruptcy your taxes would not be effected because the principal balance was less than the fair market value of the house.