
Quoting
majormoj
My Sister's house was foreclosed and sold at courthouse steps in San Diego late last year. She was told that she wouldn't be responsible for any deficiencies. Yesterday, she received a 1099 A. On Box#2 Balance of principal outstanding - $555,200
on Box #4 FMV of property, it shows $305,000. On Box#5, Was borrower personally liable for repayment of the debt - It showed YES. Does this mean she will still be responsible for any taxes on the forgiven amount?
Would appreciate any feedback. Thank you very much!