1099 A - $0 Fair Market Value??

[romanelliott]

What is the name of your state?What is the name of your state? Michigan

I received a 1099A (no 1099C with it) today. I had a foreclosure in 2004 where the bank got the house back. The house didnt sell until just this week (in 2005). Because the forclosure and sale spanned over 2 tax years (04 and 05), I am a bit confused. The 1099A says the balance is 104,500 and then the Fair Market Value actually says $0.00. I thought the 1099 would be on the difference... but with the FMV at 0 I dont have a clue. The house is beautiful and I cant imagine the FMV being lower than the 104,500.
Will I get an adjustment or something since it sold (I dont know for how much yet until they finish the closing) or am I stuck with this 104,500 as income for the 2004 tax year? So confusing. Thanks in advance for the help.

 

[HUD-1]

Talk to a tax expert. My advise would be that you need to get a handle on the FMV at the time of foreclosure. The difference between the debt and FMV at the time of foreclosure MAY be income. (I think it is income to the extent that you are solvent)