Client has 1099A. Circumstances are a little different than I read on any of the previous posts. So here are the facts:
1. Client had sink hole on property. I don't think the house caved in but it was a problem.
2. He turned in claim to insurance company.
3. He was behind in payments but had not been foreclosed on.
4. House was financed though Chase Bank (I think). Through a bank anyway.
5. When bank found out about the sink hole, they sold the note to Freddie Mac for $11,000, which is what they considered the value because of the sink hole.
6. Received 1099A from Freddie Mac dated 12/20/10 with loan balance in box 2 and the $11,000 as FMV in Box 4.
7. During early part of 2011, Chase bank bought the house from Freddie Mac for $50,000. (So the client was told)
8. He called Freddie Mac and they said he would not be getting a 1099C
Where do I put this on the tax return? I know it must be reported somewhere.
Linda, EA
1. Client had sink hole on property. I don't think the house caved in but it was a problem.
2. He turned in claim to insurance company.
3. He was behind in payments but had not been foreclosed on.
4. House was financed though Chase Bank (I think). Through a bank anyway.
5. When bank found out about the sink hole, they sold the note to Freddie Mac for $11,000, which is what they considered the value because of the sink hole.
6. Received 1099A from Freddie Mac dated 12/20/10 with loan balance in box 2 and the $11,000 as FMV in Box 4.
7. During early part of 2011, Chase bank bought the house from Freddie Mac for $50,000. (So the client was told)
8. He called Freddie Mac and they said he would not be getting a 1099C
Where do I put this on the tax return? I know it must be reported somewhere.
Linda, EA
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