Tax question 1099-A

[dogbone33]

I was wondering what this is? Balance of property 61474.98 fair market value 36k

Is this going to hurt our tax return? It also says we were liable for repayment of the debt which it was discharged in Chapter 7 so I am not sure?

Sorry, I don't know any of this and our Lawyer sucks... LOL

Thanks

[BassBoy]

That's something they send. it's one of those situations where the left hand didn't know what the right hand did....in a sense. The department that handles BK's probably didn't communicate with the department that sends out bills or 1099-C's that the debt was discharged. That's the easiest way I can thin kof putting it.

Anyway, if the home was surrendered and/or discharged in BK, you shouldn't owe anything or have to claim it as income. I would definitely check with a tax professional just to be sure....but I think it's a meaningless piece of paper to you.

[Patch]

there is a difference between a 1099 A and a 1099 C..
1099 A,you don't need to do anything with it,it is not taxable.
I myself received one today.it doesn't mean I won't get a 1099C for the same property later...but it is still cover under the 2007 relief act..

from turbotax:
Have a 1099-A?

If it's for personal property, such as a home or a car, you don't need to report it in your return. Keep this form for your records in case you get a 1099-C that indicates the debt has actually been forgiven.

If it's for business or investment related property, such as a rental property or company car, please consult a professional, or see IRS publications 544 and 4681 before continuing.

You can get IRS forms and publications by calling 1-800-TAX-FORM (1-800-829-3676) or by visiting the IRS website at www.irs.gov.