We got a 1099-A form, do we pay money?

irishfam — Thu, 06 Jun 2019 05:10:04 GMT

We were told before we shouldn't have to. Also where do we file this? What section of TT? We filed bankruptcy and it discharged in Nov 2012. We gave a home back to the bank in our bankruptcy but just now got a 1099-A saying they acquired it in 9 2013. Will we have to pay debt forgiveness tax on this or is it different bc it was covered in the bankruptcy?

MY FORM IS 1099 -MISC

NA32 — Thu, 06 Jun 2019 05:10:05 GMT

MY FORM IS 1099 -MISC

Hi Irishfam, Thanks for your question. This is perhaps t...

BillS01 — Thu, 06 Jun 2019 05:10:07 GMT

Hi Irishfam,

Thanks for your question. This is perhaps the most complicated subject matter we deal with in tax season. I'll give you some references below in quotes so you have some resources.

The short answer is that the Form 1099-A is often more informational than actionable, as opposed to the Form 1099-C, which needs to be reported on your tax return when received. Apparently you did not receive a Form 1099-C

Even with the Form 1099-C, there may be no tax consequences, such as in the case of personal residences under a certain amount or in the situation of bankruptcy. But certain income tax forms would still need to be filled out for IRS.

"If you do not make payments due on a loan secured by property, your lender may foreclose on your mortgage or repossess the property. Lenders could send a Form 1099-A, Acquisition or Abandonment of Secured Property, or Form 1099-C, Cancellation of Debt, or both. If you received a 1099-A because you have abandoned personal property, such as a car, you don't need to report it in your return.

Keep this form for your records in case you get a 1099-C that indicates the debt has actually been forgiven.

IMPORTANT: If you received a 1099-A for a business- or investment-related property, such as a rental property or company car, see IRS Publication 544 Sales and Other Disposition of Assets and IRS Publication 4681 Canceled Debts, Foreclosures, Repossessions and Abandonments before continuing.

We also recommend you check with a professional, such as an experienced EA or CPA at TurboTax CPA Select."

Hope this helps.

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Hello! I was wondering if a timeshare is considered personal property or if I will need to look into the publications more about this. Thanks for your help!

topic MY FORM IS 1099 -MISC in Retirement tax questions

We got a 1099-A form, do we pay money?

MY FORM IS 1099 -MISC

Hi Irishfam, Thanks for your question. This is perhaps t...

Hello! I was wondering if a timeshare is considered perso...