1099-A vs. 1099-C?

super

short Sale and Foreclosure 会拿到IRS的税表，那位知道1099-A and 1099-C的差别？

ForrestGump

A creditor is required to issue a 1099-A when a borrower abandons real or personal property. According to the IRS 1099-A instructions, "An abandonment occurs when the objective facts and circumstances indicate that the borrower intended to and has permanently discarded the property from use."
A 1099-A is not a notice of forgiveness. It is unclear to me what the purpose of a 1099-A is, other than to alert the IRS that at some point in the future the entity reporting the borrower's abandonment it may issue a 1099-C.
A 1099-C is a notice to the IRS that the financial institution has forgiven or canceled a debt of $600 or more. See the IRS Instructions for Forms 1099-A and 1099-C and IRS Form 982 to learn more.
If the financial institution issues a 1099-C to you, then it has forgiven the debt and you must report the amount on the 1099-C as income. Fortunately, the Mortgage Forgiveness Debt Relief Act allows taxpayers to exclude income from the discharge of debt on their principal residence. It includes the cancellation of the complete debt, or if the mortgage terms were renegotiated.
If the financial institution issues a 1099-C to you, it will probably not pursue you for the deficiency balance because it has deducted the loss on the loan from its taxes. However, there is no guarantee the financial institution will not pursue you for the deficiency balance and then later amend its tax returns. However, such a chain of events is unlikely.

Mortgage Forgiveness Debt Relief Act:
Under federal law, a creditor is required to file a Form 1099C whenever it forgives or cancels a loan balance greater than $600. This may create a tax liability for the debtor because the canceled debt is considered "income" for tax purposes.
However, the Mortgage Forgiveness Debt Relief Act of 2007 provides tax relief for some mortgage loans forgiven in 2007 through 2012. See the IRS document "The Mortgage Forgiveness Debt Relief Act and Debt Cancellation" for more information.
In summary, the Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. It includes the cancellation of the complete debt, or if the mortgage terms were renegotiated. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). According to the IRS, the exclusion doesn't apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition.
The amount of debt forgiven must be reported on Form 982 and this form must be attached to the taxpayer's tax return.
Based on the facts you provided, you qualify for the Mortgage Forgiveness Debt Relief Act if the home is your principal residence and the reason for the renegotiation was either due to a decline in the property's value or because of a change in your financial condition. If so, be sure to report the canceled/forgiven amount on Form 982, and include that form with your 2009 income tax return.

王不平

这个知识好，我也拿了个1099A，正发愁教税的问题。看来在2012年前搞定就不用纳税了。太好了。谢谢了。

super

谢了。