1099-a

[AccTaxMan]

Taxpayer's home was foreclosed by the bank (lender) in October 2010. But he did not receive a 2010 Form 1099-A. He said someone explained to him the reason is that Form 1099-A would not be issued until the bank has sold the home. But the home had not been sold by the bank as of 12/31/2010. That's why there is no 2010 Form 1099-A even if the foreclosure happened in 2010.

Does it even make sense? I thought Form 1099-A would always be issued in the same year when the property was taken back by the lender.

[Gary2]

Define "foreclosed by the bank."

The usual foreclosure is a sheriff's sale. If the bank bought it at the sale, then that's the FMV, not the value they get from selling it later.

If it was abandoned or repossessed, they have three months in which to try to sell it, after which they must report the 1099-A. In this case, it means issuing the 1099-A and/or C for Jan. 2011.