Rec'd 2013 1099-A on home sold in 2014

[Drazil65]

Our surrendered home in another state just sold at auction on 1/31/2014 (third party investor). We rec'd a 2013 1099-A for taxes? Does this mean they wrote the debt off in 2013? Funny thing is that we have been constantly receiving modification packages from them as recent as right before the auction last month.

Will we receive another 1099 for the same property next year for 2014 since that is when the home sold?

[tobee43]

they may have made a mistake these 1099A and C's are coming like the plague. we got one for (1099M for the punish payment that chase sent for the settlement) HA their butts i'm claiming that as a capitol loss. since they sent it no harm in just attaching the 982 with it.

[LadyInTheRed]

If they issued a 1099-A it is to report the acquisition (by the lender through foreclosure) or abandonment (by you) of property, not a cancellation of debt. You do not need to file a form 982 like you would with a 1099-C that reports cancellation of debt. A 1099-A is to determine whether there is a reportable capital loss or gain as a result of the acquisition or abandonment. Read IRS publications 4681 and 544 for more info.

They issued the 1099-A in 2013 because you abandoned the property in 2013.

I don't know if you will also receive a 2014 1099-A for the sale. It is possible that you will receive a 1099-C at which point you will need to file a form 982.

[tobee43]

we are still filing them on schedule d.

with the one i rec'd it was a total error and should never had been a 1099 Misc it should be a 1099S we took a vote and i'm just attaching a 982 to my personal return although it really didn't effect us that much. the point was i didn't have to report it at all, but i am.

we have had numerous clients getting them this years. to quote me on one of my blogs:

"Under the rules for calculating the tax consequences of a foreclosure, the taxpayer will need figure out the "selling price" so that gain or loss can be calculating. Depending on the type of loan, the taxpayer will utilize either the fair market value of the property or the outstanding loan balance on the property for the selling price. Both of these figures are reported on Form 1099-A. The outstanding loan balance is found in Box 2; the property's fair market value is found in Box 4. The date of the foreclosure is indicated in Box 1, and this will be used as the date the property was disposed of (that is, the "sale date"). Taxpayers will also need to know if the loan was a recourse or a non-recourse loan; the loan was probably a recourse loan if the bank has checked "yes" in Box 5 which asks "Was borrower personally liable for repayment of the debt?"

People might receive multiple Forms 1099-A (one from each lender) for a single property. People might also receive Form 1099-C instead of Form 1099-A if the lender both foreclosed on the property and canceled any mortgage debt for which the borrower was personally liable.

Gain or loss is reported on Schedule D for homes that were personal residences. As a reminder, the IRS does not allow people to claim a loss on personal residences. Any gain (and I have seen situations where a foreclosure results in gain being reported) on personal residences can be offset by the capital gains exclusion for a main home.)"

we are still using this method when filing both in calif, florida and nj. i would consult your tax adviser and take no chance at all as to what and how they want to handle it. again, many of these 1099s are confusing and pertain to more than one situation even tho it refers to the same item involved. better to be safe than sorry.

also it doesn't matter what date the sale took place in, the process most likely began earlier than 2014. the 1099s can be issued most anytime they feel like it. unfortunately.