I purchased a Condominium Unit in 2005 for $489,000 as a primary residence.Because of various circumstances, I moved out and started renting the property in 2011. Because of my health, I eventually stopped renting the unit in June of 2019. My health continued to decline and my mortgage company accepted a Deed-In_Lieu and we closed that transaction in October of 2019. The outstanding principal balance was $379,000.There was an Exhibit "B" with the DIL that states "That the consideration for said deed was and is payment to affiants of the sum of $1.00 by (Mortgage Holder) to forbear taking any action against affiants to collect on the obligations secured by the mortgage...and to not seek, obtain or permit a deficiency judgement against affiants....At the time of making said deed in lieu affiants believed and now believe that the aforesaid consideration therefore represents the fair value of the property so deeded, or more."
The Lender did not issue at 1099-C or 1099-A or 1099-S. I contacted the lender and asked if they were going to send me something so I could file my taxes. No one will return my call or respond to an email.
When I complete my tax forms do I use $379,000 as the fair value or the $1 they show as fair value in the documents? Is $379,000 income? What does the $1 have to do with anything? Thank you.
