1099-A or 1099-C?

[technoreid1]

Hello....


We were granted a CH7 BK back in 4-08 and our foreclosed house was sold back to the bank (REO) around 11-08

THE HOUSE WAS INCLUDED in OUR BK 7 and everything was dismissed....

Never received a 1099-C or 1099-A Not sure if I am supposed to receive any of these forms....

Do I need to report anything on my taxes? (Turbotax is asking me about these forms, also I have not found an option in Turbo tax to tell the IRS that I have filed a BK)


Any help will be appreciated!!!

thanks, techno

[magyar123]

You might still get one. Remember today is only the 3rd. Banks/creditors had until 1/31 to send out these forms - and as you are probably aware the USPS is not the most reliable.
Hell, yesterday someone brought over a piece of mail for me that was delivered to him - 5 houses to the left from me.

[southernbelle]

I agree with magyar123. They have until the end of Jan to put your paperwork in the mail. It's probably in route right now. If you don't receive it by mid Feb, you might need to contact the lender, but the mail might just be backlogged. I'd wait at least another week.

[JoeBankrupt33]

I would not expect to get one. Anything you included in the bankruptcy should not report the cancellation of debt. If, for some reason, they still send you the form, look up information about form 962. I'm not sure if (or how well) turbo tax handles this.

Just to be safe, you should wait a few days. If you are e-filing with direct deposit, and the IRS accepts your return by noon Thursday (file by Tue to be safe), then you would get a direct deposit on the following Friday. So, if you can't file today, then next Tuesday is a good day to shoot for.

[technoreid1]

I would not expect to get one. Anything you included in the bankruptcy should not report the cancellation of debt. If, for some reason, they still send you the form, look up information about form 962. I'm not sure if (or how well) turbo tax handles this.

Just to be safe, you should wait a few days. If you are e-filing with direct deposit, and the IRS accepts your return by noon Thursday (file by Tue to be safe), then you would get a direct deposit on the following Friday. So, if you can't file today, then next Tuesday is a good day to shoot for.

Just called my former lender and they said I will not get a 1099-C. Maybe this is because it was included in the BK. (although I do have a credit card -capital one that sent me a 1099-c)

The lender said I will get a 1099-A??

Would I report the 1099-A on the 982?

Does this make sense...?

Thanks a lot!!!!! techno

[JoeBankrupt33]

The 1099A is to report the foreclosure. If including this with your taxes causes your taxes to go up, then you would need to use the form 982. Most people will not have to pay taxes for any foreclosure this year.

In my case, I have to report the 1099A because my home foreclosed last year and I just filed bankruptcy now. I have to report a sale of my home and the amount it "sold" for is the amount listed as the value on the 1099A. I bought my home for $235,000 5 years ago. The 1099A says the value of the home is $245,000. So, I have a $10,000 "gain" from selling my home. But, homeowners are allowed to exempt $250,000 worth of gain on their main home ($500,000 for a joint return) every 2 years. So... I won't have to pay any taxes, and I don't have to fill out any other forms.

[technoreid1]

The 1099A is to report the foreclosure. If including this with your taxes causes your taxes to go up, then you would need to use the form 982. Most people will not have to pay taxes for any foreclosure this year.

In my case, I have to report the 1099A because my home foreclosed last year and I just filed bankruptcy now. I have to report a sale of my home and the amount it "sold" for is the amount listed as the value on the 1099A. I bought my home for $235,000 5 years ago. The 1099A says the value of the home is $245,000. So, I have a $10,000 "gain" from selling my home. But, homeowners are allowed to exempt $250,000 worth of gain on their main home ($500,000 for a joint return) every 2 years. So... I won't have to pay any taxes, and I don't have to fill out any other forms.

If you put your home into your bankruptcy, does it still "go through foreclosure" or the foreclosure process. I think I am a little mixed up with all of this....

Also - If you filed a BK first and put your home in with the bankruptcy would you still have to file a 1099-A with your taxes
?


thanks, techno

[StartingOver08]

If you put your home into your bankruptcy, does it still "go through foreclosure" or the foreclosure process. I think I am a little mixed up with all of this....

Also - If you filed a BK first and put your home in with the bankruptcy would you still have to file a 1099-A with your taxes
?


thanks, techno

These are two separate legal events. The bankruptcy discharges (ideally!) the debt from you so you no longer owe it if you surrendered the home. The house loan should show as IIB and zero balance on your CR. The foreclosure process must still occur as it is the lenders way of clearing off all liens and encumbrances to the property and to secure their legal ownership to the collateral (house).

As to the 1099-A read IRS publication 4681 - page 4 speaks to BK filings.