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  1. #1
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    Feb 2010
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    Default 1099-A After Courthouse Foreclosure Sale

    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!

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: 1099-A After Courthouse Foreclosure Sale

    Quote Quoting majormoj
    View Post
    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!
    She will get a 1099C eventually and will have to report it on her income tax return, but because it was her principal residence she will be able to exclude it from income.

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