Client lost her job in 2005 and could not make payments on her home mortgage.
she moved out of home and let it go back to the mortgage company.
Client received a 1099-A from mortgage co.
Box 2 of 1099 balance of mortgage $129,000
Box 4 Fair Market Value $138,000
Box 5 Was borrower personally liable for repayment of Debt? Yes box is checked.
Client lived in the home for more than 2 years. Can we treat this as a sale of
residence and exclude gain under Sect. 121?
If not, what would be the best way to handle this?
Thank all of you for your assistance.
she moved out of home and let it go back to the mortgage company.
Client received a 1099-A from mortgage co.
Box 2 of 1099 balance of mortgage $129,000
Box 4 Fair Market Value $138,000
Box 5 Was borrower personally liable for repayment of Debt? Yes box is checked.
Client lived in the home for more than 2 years. Can we treat this as a sale of
residence and exclude gain under Sect. 121?
If not, what would be the best way to handle this?
Thank all of you for your assistance.
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