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  1. #1
    Join Date
    Feb 2010
    Posts
    1

    Default The Bank Sent Both a 1099-A and a 1099-C After a Short Sale

    My question involves a mortgage in the state of: VA

    So I did a short sale last year. I had a legal dispute with the bank who said I still owed the deficiency. Eventually they decided not forgive the debt. Now I received both a 1099-C dated the settlement date and a 1099-A dated 12/31/09 for like a thousand more than the 1099-C amount (probably adding interest) I believe I shouldn't have received both of these forms. Besides, this was not a foreclosure, the bank never took possession of the home. So why would I have received a 1099-A?

    Also, when I enter these into Turbotax, Turbotax determins my forgiven debt to be the 1099-C plus the 1099-A amount. I believe it should only be the 1099-C amount. Is this correct and if so, how should I enter it in the canceled debt worksheet. If this is all incorrect, how do I correct this?

    Thanks!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: The Bank Sent Both a 1099-A and a 1099-C After a Short Sale

    The 1099-A is advisory, for purpose of determining any capital gains tax liability. The 1099-C reports the 'income' to the IRS.

    If you need help with your TurboTax software, I suggest calling their customer service.

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