Should I receive a 1099s?

[atrain55]

My previous and first post was about my condo that I had in AZ (thanks to those who helped!). I'll keep this short and sweet with bullet points to keep it concise.

- Bought a condo in AZ for 127k in 02/2005 and lived there until 03/2006
- Moved back to CA and rented it out a few times (2x over 4 years)
- included it as a rental property with deductions on my taxes
- Filed chapter 7 in December 2010 and was fully discharged in March 2011 and closed (included the AZ condo and did not reaffirm)
- In a crazy turn of events, it became apparent that the bank "reconveyed" the property back to me, leaving the condo in my name. Essentially turning it back over to me, the only liens left were from the HOA for unpaid dues and legal fees (~15k, although 10k was just bogus fees)
- I sold the condo in October of 2012 for 55k, 15k going to the HOA, HOA's attorney, and collection agency.

My number one question is: Should I get a 1099-s for sale of real estate?

Obviously, this was a unique situation and best case scenario since I went from being sued by an HOA for 15k to being given a condo and selling it for a "profit" (albeit the condo was what put me in bankruptcy in the first place). I was told by a real estate attorney in AZ that it seemed as though the bank didn't feel it was worth it to take over the condo and try and sell it. Also that the HOA fees were ridiculous and I should ask for a settlement. I did, but they knew I was trying to sell it and delayed all the board meetings until after the sale and just took the full amount through escrow.


Optional and much appreciated answers to these questions are welcome as well!


I didn't rent it out over the year that I filed ch 7 and assumed the property would just be taken over by the bank so I didn't make an effort to try to rent it out but - Can I deduct the 15k that I paid in legal and HOA fees?

Is this a capital gain or loss? Being that I purchased it for 127k and since I made a paper profit after selling it for 55k.

Thanks!

[tobee43]

you situation is unique with respect to it once being your primary residence and then rental property. since it was used as a rental and if you do rec a 1099A or C or both, i would consult with a tax professional as this is a tight wire situation. rental property is treated differently with respect to bk and 1099's which ever you get lettered 1099 you rec, as this appears to have been actual gain for you.

[HHM]

Interesting situation.

As for the 1099-A, I am not sure who would even issue it at this point. Maybe the HOA, but that would be odd. However, you did sell real estate, so you do need to address it on your taxes regardless if you get a 1099-A. Unless you have a ton of depreciation, you probably have a loss anyway.

[atrain55]

Thanks for the answers thus far.

Hmm... I did receive a 1099-A but that was in early 2011 I believe...

and to the best of my calculations, it still would be a loss. I didn't enough depreciation.

[atrain55]

Also for my own knowledge, doesn't anyone who sells real estate receive a 1099-s? why would this be an exception? I filled out the 1099 info when I closed.

[tobee43]

Thanks for the answers thus far.

Hmm... I did receive a 1099-A but that was in early 2011 I believe...

and to the best of my calculations, it still would be a loss. I didn't enough depreciation.

i would look that up if i were you to see what it was applicable to. if it was a 1099 "A" it had something to do with real estate.

[atrain55]

Ok so the 1099-a I received dated in Oct of 2011 was from the lender. I'm confused. That means I won't be getting another one obviously? I guess I'm mostly confused because I had a real estate attorney in AZ review all of these docs and confirm that it was still my property, and escrow pulled title in my name only.

So then I just need to include this sale manually on my taxes? I had asked a CPA a few months ago about what he though about my situation and he didn't seem informed enough about bk process because he assumed that it was forgiven debt (which it's not, right?). But maybe I just need to give him all of this documentation and have him handle everything this year...

[tobee43]

usually or many times you don't have to do anything when you file and have been issued a 1099 A if you don't have any tax ramifications. you did give that 1099 to your cpa right??

if a 1099 was already issued for that property, i'm not thinking another will be coming around, but again, i would check to make certain that 1099A pertained to that property and when you filed your taxes that year and was considered when your taxes where done and there was no gain...which is most likely what happened and you'll live happily ever after...i hope

[chicagoed195]

The 1099-A is issued when a lender forecloses or acquires the secured real estate when it is abandoned by the debtor. It has nothing to do with a 1099-S.

A 1099-S is issued at the time a property is sold and reports the actual sales price of the property.

The reporting issues are very difficult and would require a detailed analysis by a paid professional who is in possession of all of the appropriate facts.

[tobee43]

The 1099-A is issued when a lender forecloses or acquires the secured real estate when it is abandoned by the debtor. It has nothing to do with a 1099-S.

A 1099-S is issued at the time a property is sold and reports the actual sales price of the property.

The reporting issues are very difficult and would require a detailed analysis by a paid professional who is in possession of all of the appropriate facts.

exactly. it really does get a bit confusing. there are various types of 1099's....as chiagoed mentioned, the s....there are A,B, DIV, G's INT, some Mic one i remembered included proceeds from crop insurance (lol)....I have seen a 1099OID and a PATR...as well as the mentioned S and don't forget the R. confused?

don't be. if you get a 1099A or 1099C and you filed bk it will ok, and if not, there is nothing that can't be dealt with.

[HHM]

You would use your 1099-S on for this years taxes.

There is no one that is going to "issue" a 1099-A as a result of you selling the house.

[atrain55]

Got it... I think...

I guess I'm still confused as to why I would get a 1099-A for the condo last year, and then months later receive a deed of release and reconveyence back to me for it.

I'll try and get the CPA I first spoke with to research it because I still need to know where to file the sale of the property. Under Business or Personal? Loss or Gain? Deductible expenses?

Hopefully I'll get a bit of clarity and report back. It's hard because there doesn't seem to be any case summaries for this type of thing and I want to keep it ethical without spending or being billed too much.