taxes after bankruptcy & foreclosure 1099a

[Guest]

I was discharged from my bankruptcy in 2011, my house was foreclosed in 2012 (it was included in the bankruptcy). I just received a 1099a.
Someplace I read that I have to put it on my tax return, other places I read says I do not. Does any one know if I do or not and if there is anything I need to do on my tax return about the foreclosure of my house. If it makes a difference I am in arizona

[LadyInTheRed]

A 1099a is issued to provide information to determine whether there was a capital gain or loss as a result of the sale of the home. In the unlikely event that there was a gain on the sale, you would have to report it on your income tax return. Ask a CPA if you have any questions about that. If the bank also issues a 1099c, you have to attach form 982 to your income tax return to show that the debt was discharged in BK.

Here's some information on the IRS website regarding 1099a and 1099c with links to further information: http://www.irs.gov/taxtopics/tc160.html

[tobee43]

if the mortgage was included in your bankruptcy and discharged the bank can and may issue the 1099A on their loss, and what may seem or appear as a "gain" on your behalf. but you have no tax liability due to your bk as it proves you were insolvent.

these 1099's are mainly to show the banks losses as well as what could be considered a "gain" in some rare cases. it is their, the banks way of reporting them to the irs so when they claim their billions of losses your little bit is "legally" included. i know they look scary, but really, it's going to be ok.

had you not filed and included the mortgage that may be more difficult to prove one's insolvency. in this case most accountants usually attach the discharge, but it's up to the way your tax professional decides to handle it as lady stated. it's best to have someone file for you this year if in past years you filed yourself.