I have the same situation as - http://www.thetaxbook.com/forums/printthread.php?t=190
I've been doing much reading but need help - I'm in need of someone spelling it out.
So, if a client has a 1099A for foreclosure on his home in 2002 (doing old return) and as yet no 1099C then I do not need to do anything? (He was personally responsible for repayment of debt, the box was marked yes.)
e.g. FMV was $100,000, balance of principal was S200,000, original price for the home was $300,000. Can I put sale price at $100,000 (difference of principal and FMV since FMV was lower) and the cost at $300,000 and mark personal loss? Or does the original price tag not enter into the question.
A related question: Do you think they never sent a 1099C was because bank sold it for $50,000 more than the principal owed a couple of years later? (It appears the FMV on the 1099A was incorrect or values went way up in a couple of years.)
I've been doing much reading but need help - I'm in need of someone spelling it out.
So, if a client has a 1099A for foreclosure on his home in 2002 (doing old return) and as yet no 1099C then I do not need to do anything? (He was personally responsible for repayment of debt, the box was marked yes.)
e.g. FMV was $100,000, balance of principal was S200,000, original price for the home was $300,000. Can I put sale price at $100,000 (difference of principal and FMV since FMV was lower) and the cost at $300,000 and mark personal loss? Or does the original price tag not enter into the question.
A related question: Do you think they never sent a 1099C was because bank sold it for $50,000 more than the principal owed a couple of years later? (It appears the FMV on the 1099A was incorrect or values went way up in a couple of years.)
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