1099-A talk.

[OneDay]

I got one and still have not gotten a complete answer to my question about what it means...
My principal balance was less then the fair market value by $17k.

How does that affect me?

I cannot be the only person who has recieved a 1099-A...
Thanks in advance.. I am Stressed...

[Flamingo]

Publication 523 can probably help you. Did you read the back of your Form 1099-A for instructions?

[OneDay]

there is no information on the back of the 1099-A

Box 2. $122,186.07 Balance of principal.
Box 4. $139,294.37 FVM.
Box 5. Yes personally liable for debt.


PUB 523

Generally, you will part of any gain from the destruction or condemnation of
receive Form 1099-A, Acquisition or Abandonment of Se- your home as explained later in the discussion about a
cured Property, from your lender if your home is trans- home that was destroyed or condemned under Special
ferred in a foreclosure. This form will have the information Situations.
you need to determine the amount of your gain or loss and
any ordinary income from cancellation of debt.

4. Enter the smaller of line 1 or line 2. Also include any proceeds you
received from the foreclosure sale. (If you are not personally liable information, \
for the debt, enter the amount of debt canceled by the transfer of 537.
property.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Enter the adjusted basis of the transferred property . . . . . . . . . . . . . . . . . . .
6. Gain or loss from foreclosure or repossession.
Subtract line 5 line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

So assuming I did this correctly I have a loss of $17,108.30 Correct?
But what is the ADJUSTED BASIS of the transfered property?

From what I read and understand the bank did not forgive any debt as the FVM exceeded the balance principal.

I do not understand the TAX lingo bs and I am not looking for a "look here" I am looking for an answer.
Anyone? Thanks

[Flamingo]

Since you are going into deep tax matters and tax law, it might be to your benefit to talk to a CPA or tax expert and have them do your return this year so you fill out your information correctly so in case there is a problem, you have the preparer to fall back on.

[marteeca]

Hi there OneDay,

I understand your frustration. I am in the same boat. I've been directed to all sorts of publications, but they don't help. I've also been told to consult a CPA or tax professional, but I have no money. I called the IRS 5 times about my 1099A, and each time they tell me if FMV is more than the loan, you ignore it. In my case, according to them, I have a gain. So, have you gotten any further information elsewhere?