Announcement

Collapse
No announcement yet.

Short sale and Form 1099-A

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Short sale and Form 1099-A

    Taxpayer had a short sale of his main home in 2011.

    The sales proceed is enough to pay off the 1st loan. But it is not enough to pay off the 2nd loan.

    Does that mean he should have received a year 2011 Form 1099-C from the lender of the 2nd loan?
    Tags: None
    #2
    Recourse or non-recourse? If a recourse loan and they have truly forgiven the debt, then they should be sending him a 1099-C.
    Michael

    Comment

      #3
      2nd Loans are typically recourse depending on State - although I have seen some that were written at acquistion - Like an 80% loan on first and another 10 - 20% loan - Determining Non-recourse vs Recourse might be your first issue - Then if recourse --Question is when? What Year for 1099C could be 2011 or could be 2012

      Seems like we are at the "mercy" of the financial institution and their issue dates.

      Sandy

      Comment

      Previous template Next

      Disclaimer

      Collapse

      This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

      Working...
      X