debt  legal  taxes


Question by  racool (57)

How do you put a foreclosure on a 1099 form?

I need to know about foreclosures and 1099 forms.


Answer by  cgroverla (516)

If your property was foreclosed, your cancelled debt will be documented with a 1099C from your lender. You do not issue the 1099, you receive it. The information is used on your tax return. If the property was your main home, no tax may be due on the cancelled debt.


Answer by  Att4372 (1704)

Foreclosure does not go on a 1099 - CANCELLATION of DEBT from foreclosure goes on a 1099. The holder of the loan creates the 1099 for the mortgagee. Box 2 is the amount cancelled. Box 5 is the description of the debt type. If a mortgage, income might not be taxable. See IRS Pub 4681 for full details.


Answer by  Gabriel (2146)

You might receive a 1099-A or C for the forgiven amount of debt, called a discharge of indebtedness. But recent tax changes will affect how much of it is taxable.

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