What is a 1099-A document? If the property was taken by the bank was worth 150k but the loan was only 125k?

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What is a 1099-A document? If the property was taken by the bank was worth 150k but the loan was only 125k?

do I have a loss to report on the tax return? How does this work? Does it go on my schedule D?

2006-09-06 05:16:28 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States

2 answers

if the value the bank sells the foreclosed house at is more than you owe on it then you have to pay capital gains on that amount

2006-09-06 13:33:45 · answer #1 · answered by Billie 5 · 0⤊ 3⤋

A 1099-A states that you have abandoned property held to secure a loan. Any gain or loss is based on your cost for the property vs what the bank sold it for. If the property was held for personal use, no loss is deductible.

2006-09-06 13:55:30 · answer #2 · answered by STEVEN F 7 · 3⤊ 0⤋