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1099 A issue

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    1099 A issue

    Cleint purchased personal residence in 2000 for 200,000. She lost the home in 2010 and recieved a 1099A. Line 2 on the 1099a, balance of principal outstanding is 500,000. line 4, FMV is 400,000. line 5, she was personally liable for debt. How to handle on tax return??

    #2
    Foreclosure, repossession, or abandonment?

    Assuming foreclosure, she has $200K of gross profit, probably excluded under the rules for sale of personal residence. The remaining $100K should wait until the 1099-C arrives.

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