Form 1099-A

RayT

Member

Join Date: Nov 2005

Posts: 74
#1

Form 1099-A

03-09-2009, 04:15 PM

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.
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Davc

Senior Member

Join Date: Dec 2006

Posts: 1088
#2

03-09-2009, 04:32 PM

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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