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Form 1099-A

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    Form 1099-A

    Client reconveyed an investment lot back to the bank. Bank issued a Form 1099-A. Loan balance was $286,000. FMV was $200,000. Borrower paid $300.000 for lot. Borrower was personally liable for repayment of the loan. The property is currently for sale by the bank. Since the bank did not issue a Form 1099-C, I assume the debt has NOT been cancelled. I further assume that if they sell the lot on a short sale, they will issue a Form 1099-C for any deficit to the borrower. If I'm correct, what action is taken with the Form 1099-A for 2008?

    Comments appreciated.

    #2
    Originally posted by RayT View Post
    Client reconveyed an investment lot back to the bank. Bank issued a Form 1099-A. Loan balance was $286,000. FMV was $200,000. Borrower paid $300.000 for lot. Borrower was personally liable for repayment of the loan. The property is currently for sale by the bank. Since the bank did not issue a Form 1099-C, I assume the debt has NOT been cancelled. I further assume that if they sell the lot on a short sale, they will issue a Form 1099-C for any deficit to the borrower. If I'm correct, what action is taken with the Form 1099-A for 2008?

    Comments appreciated.
    Sell the lot for 200K.

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