I received a 1099 a form do I pay taxes for that? – Money & Services

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My house was foreclosed on may, 2009 and I received a 1099a do I pay taxes for this or just filing a 982 form its enough?(we lived in the house until they put it for sell on a auction)

Answer

The 1099-A form is for information only. If the fair market value (FMV) of the home is more than the loan principal amount, you do not need to report anything, as presumably the lender got your home and it was worth more than what you owed. If the FMV is less than the loan principal, the lender should send you a 1099-C to document the amount of loan forgiveness. In most cases lenders send either a 1099-A or a 1099-C, but not both, so I’m guessing that your FMV is more than the loan, in which case there are no tax consequences, and you do not need to file form 982.

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