I have a question about this form, it is on a foreclosures properity, and the form to fill out is 4797 how do I report this on that form in box 1 the date 05/05/2008 and box 2 196,828 and box 4 103,576 are these the only boxes on the form that need to be file. I guess I am tring to say is there anything else needed to be added by me that is not on the form 1099-A, oh in and box 5 question ask weas borrower personally libable for repayment of the debt? box check (yes).
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The lender repo'd the property. So, box one shows the date they sold it. Probably at some sort of auction. So that will be the date you will show as the sold date. The t/p will have to provide you with the purchase date. If you don't already have that info.Originally posted by dataxes View Post
Then box two is the amount of debt that was outstanding at the repo. Box four shows what they got for the property when they sold it. The difference between these two boxes is how much debt was not covered by the sale. But, it is not forgiven debt yet. The lender has several years to decide to forgive the debt. They may go after him for the difference. Also, there may be other fees etc that the lender will tack on that would increase the debt still owed.
So, if you are using a 4797, it must have been used for business purposes. So, you will show the purchase date, the sold date, Box four will give you the sales price and the t/p will have to provide you with all the info to determine the basis. Don't foget to account for any depreication taken on the property. This will show the gain or loss on the property.
That's about it.You have the right to remain silent. Anything you say will be misquoted, then used against you.
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