Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-24-2017, 08:43 AM
Junior Member
 
Join Date: Mar 2017
Posts: 2
1099-C issued in 2015

I had my primary home in foreclosure in 2015. I found out from that 1099-A was issued in 2015. In 2016 the house was Sold - I did not get anything such as 1099-C yet. Is there a way to Take Loss on this primary residence
for ex. I bought it in 2004 at 205K + added Rennovations Basement etc = 10K = Cost basis = 220K. Bank Sold is for 170K - Can I take Losses on My
2016 Tax Return? The 1099-C shows 196K as FMV and Mortgage Debt as 146K. I appreciate your help.
Thank you



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-24-2017, 04:28 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,127
I had my primary home in foreclosure in 2015. I found out from that 1099-A was issued in 2015. ======> in 2015 you didn't have to report the form 1099-A, as it's sale usually results in a loss and the loss on primary residence is not deductible. Foreclosures may still result in taxable income. If your lender cancels or forgives the mortgage debt on a recourse loan, you may have to include this amount as income, unless certain exceptions apply.If the lender forecloses and cancels your debt in the same year, you most likely receive only form 1099-C, which will report how much debt was cancelled. That form will have to be reported on your tax return. It is possible that the form 1099-C will be issued in the next year or so... it will have to be reported in the year the form indicates Canceled debts that meet the requirements for Cancellation of qualified is principal residence indebtedness


In 2016 the house was Sold - I did not get anything such as 1099-C yet. Is there a way to Take Loss on this primary residence
for ex. I bought it in 2004 at 205K + added Rennovations Basement etc = 10K = Cost basis = 220K. Bank Sold is for 170K - Can I take Losses on My
2016 Tax Return? The 1099-C shows 196K as FMV and Mortgage Debt as 146K.=======> the loss on primary residence is not deductibleForgiven loan debt is declared on tax return for the year in which it was forgiven: say, for example,You can't decide to declare loan debt forgiven in 2013 on your 2014 or 2015 tax return -- it must be declared for 2013. Also, don't wait on 1099-C to arrive before declaring on your tax return any loan debt your lender has notified you it's already forgiven. Lenders sometimes neglect to send borrowers 1099-C showing forgiven loan debt, but still send them to the IRS In a short sale, struggling homeowners avoid foreclosure by relinquishing their homes for less than they owe on the mortgage. Normally when a lender forgives or cancels a mortgage debt or another type of debt, you have to pay income taxes on any forgiven amount that was due. But for mortgage debt forgiven in 2016, special exceptions exist.For starters, if the cancelled debt applied to a mortgage on your main home ? not a second home or investment property ? you may be eligible to exclude the cancelled debt from your income.The net result is that you typically will not owe taxes on forgiven mortgage debt when the property in question was your principal residence The exclusion for "qualified principal residence indebtedness" provides tax relief on canceled debt for many homeowners involved in the mortgage foreclosure crisis currently affecting much of the US. The exclusion allows taxpayers to exclude up to $1M if Married Filing Separately or $2M if Married Filing Jointly of "qualified principal residence indebtedness." The provision has been extended until the end of 2016.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-24-2017, 07:12 PM
Junior Member
 
Join Date: Mar 2017
Posts: 2
Smile Thank you so much

Hello Sir,

Thank you so much for your reply. I really appreciate this.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 03-24-2017, 09:03 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,127
Quote:
Originally Posted by ghanudave View Post
Hello Sir,

Thank you so much for your reply. I really appreciate this.
thank you ; good luck



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
2015 AGI + 1099 income >> 2014 AGI, help with estimated taxes vtrang Estimated Taxes 2 08-13-2015 09:54 PM
Do not agree with K-1 issued by LLC partnership of 4 members mechmonk Limited Liability Company 3 04-15-2015 01:41 AM
Paypal issued incorrect 1099 -- HELP!!! cbstevens11 Income 1 02-03-2015 08:34 PM
deducting an issued 1099 misc yomama Limited Liability Company 1 04-05-2010 10:51 PM
IRS provides more clarification on Tax Rebate's issued in 2008! TaxGuru For 2008 1 09-13-2008 03:38 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning