Discussion:1099 a on rental property
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Discussion Forum Index --> Advanced Tax Questions --> 1099 a on rental property
Discussion Forum Index --> Tax Questions --> 1099 a on rental property
| 9 March 2008 | |
| I have a client whom received a 1099-A on a rental property. The originial basis is 150,000. The 1099 states in box 2 - 120,000 and box 4 - 126,675. I think this is to be treated as a sale and disposition, but I am not quite sure how to use the information from the 1099A. Would the amount in box 2 or box 4 be treated as the sales price? Also, I believe there was a second mortgage on the house, but no information was received on that mortgage. How does this information need to be handled? | |
| 10 March 2008 | |
| Ok, then you need to find out if this was foreclosure or a deed in lieu of foreclosure. I am going to guess and say that this is a foreclosure, in which case the sales price is $126,675. When and if the second mortgage is cancelled, the taxpayer will realized debt cancellation income for the amount of the second mortgage. | |
| 11 March 2008 | |
| Ok, thanks. One more question, if my client does recieve an 1099-C for the second mortgage, what type of income would that be considered, capital gains or oridinary? | |
| 11 April 2008 | |
| I have one similar to this also, couple has rental property and long story short they "let" in all go back right at end of year.
For 2007 there is a 1099-A but they have not received a 1099 C yet Also on one property it is marked liable for debt and on another it is checked not liable for debt. Is this a mistake on the lenders part?? | |
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