still confused about 1099-A

[ccchi]

We were discharged on October 2010. One of the things discharged was an investment property we had. That property was finally sold or acquired by the bank on 2/14/11. We just recieved a 1099-A. I am trying to see how this will affect when file our taxes. Can we still fill out 982 since it was discharged through bankruptycy?

Here is what the form 1099-A has:
Balance of principal outstanding: $220,081.26
Fair Market value of Property: $129, 000
was borrower personally laible for repayment of the debt? yes


Please help me understand.

[tobee43]

welcome to the forum ccchi!

it will not effect your taxes. if you have read the other threads and cannot get a "clear" understanding about how it will effect you tax wise. it may be best to give it to your accountant and he/she can and will explain if you filed bankruptcy, and you listed the property, and the the bankruptcy was discharged and closed, you would fall under the category of "insolvent" meaning that you were be covered under the mortgage forgiveness debt relief act. which is in effect through 2012.

let me add the 1099-A Acquisition of Abandonment of Secured Property : . the lender sent you the 1099A form because they are required to report the deficiency to you as well as to the IRS.