1099a

[spanel]

So in the past abandonment on a personal residence would not have any tax consequence (or at least its been a while).

So I'm a little rusty on this one.

Loan balance - FMV (if greater) - non taxable correct?
Loan balane - FMV (is less) - difference is taxable unless insolvent?

Where would I put the 2nd example if they are not insolvent to only tax the difference? Assuming this all goes on a 982?

Thanks!!

Chris

[TaxGuyBill]

A 1099-A does not mean that any debt was cancelled (yet), so Form 982 does not apply.

A 1099-A is treated as if the home was sold.

The 'sale price' depends on if the taxpayer was personally liable for the debt (Box 5). If yes, the 'sale price' is the lower of the (1) Outstanding Debt (Box 2) and (2) the Fair Market Value (Box 4). If the taxpayer was not personally liable (Box 5 is not checked), then the sale price is the Outstanding Debt (Box 2). In the event the taxpayer actually received any money from it, that amount is added to the sale price in both situations.