ljwalters Posted April 15, 2009 Report Posted April 15, 2009 Client has 1099 A balance of principal $627,716.14 Fair market value $733,410.92 does original basis come into play $860,000 box five borrower personally liable yes. If the bank claims it is wor4th more than the dept why would she still be liable for the unpaid balance? What am I missing and how to report. (No 1099C as of yet) box 1 date of acquisition was August 2008. Linda and buddy This is my last one and the 1099A just came to me today. Quote
LindaB Posted April 15, 2009 Report Posted April 15, 2009 It is a 1099-A so there is no COD income to worry about, also the FMV is more than the loan amount so no COD. Report it as a sale using client's basis and the loan amount as the sales price and the date on the 1099-A as the date of the sale. Quote
imjulier Posted April 15, 2009 Report Posted April 15, 2009 look at pub 544 starting on pg 4. Personal losses are not reported. Julie Quote
David1980 Posted April 15, 2009 Report Posted April 15, 2009 look at pub 544 starting on pg 4. Personal losses are not reported. Julie Agree, in this case you can literally ignore the 1099-A completely. Quote
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