Discussion:FMV on 1099-C inconsistent with actual sales price
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| Revision as of 16:58, 15 October 2009 Kevinh5 (Talk | contribs) (which was issued) ← Previous diff |
Current revision Chase (Talk | contribs) (Actually a 1099-) |
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| {{ForumReplyPost|UserID=Kevinh5|Date=15 October 2009|Text=which was issued?}} | {{ForumReplyPost|UserID=Kevinh5|Date=15 October 2009|Text=which was issued?}} | ||
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| + | {{ForumReplyPost|UserID=Chase|Date=15 October 2009|Text=Actually a 1099-C AND a 1099-A were issued by the lender on the first mortgage with the exact same dollar amounts and dates. | ||
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| + | The lender who held the second issued a 1099-A using the FMV of $30K with the debt balance of $250K (which appears to be reversed based upon the loan statement at year end). Also has a date of 12/15/08. }} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> FMV on 1099-C inconsistent with actual sales price
Discussion Forum Index --> Tax Questions --> FMV on 1099-C inconsistent with actual sales price
| 15 October 2009 | |
| Client received 1099-C related to his 1st mortgage in CA with a transaction date of 12/15/08. The FMV on the 1099-C is $300,000, which incidentally is higher than the amount owed to the lender. The loan is recourse (but no COD given the figures here). I prepared the return and reviewed it with the taxpayer last night. He showed me that the bank actually sold the house to a buyer in May of 2009 for $192,000. If the $192,000 is used as the sales price, then there is COD income.
Which figure is required to be used on the return as the FMV? Seems to me that the lender on the first only received $192,000 on the sale. Would they re-issue a 1099-C? He also had a second mortgage. The second mortgage lender issued a 1099-A with the same date of 12/15/08 and they stated that the FMV was $30K with a debt balance of $250K. Looking at the actual statement from the lender, I see that his balance on the second was $30K -- seems like the lender mixed these numbers up and that the FMV should have been reported as $250K with the debt balance = $30K. How should the 1099-A be reported on the tax return? I don't want to show the debt as $250K and FMV of $30K because this is backwards and will generate huge COD income. Thank you. | |
| 15 October 2009 | |
| Actually a 1099-C AND a 1099-A were issued by the lender on the first mortgage with the exact same dollar amounts and dates.
The lender who held the second issued a 1099-A using the FMV of $30K with the debt balance of $250K (which appears to be reversed based upon the loan statement at year end). Also has a date of 12/15/08. | |
