Hi All,
I am hoping someone can help with the following scenario. Let’s say the lender issued a 1099-A on a rental property is a recourseable state with the following information.
Balance of Principal Outstanding = 300k
Fair Market Value of Property = 325K
The taxpayer cost basis in the property was 400K. What is the tax consequence of this foreclosure transaction? How will this be taxed differently if it was a primary residence property?
Scenario 2:
Again, recourseable loan but this time information is as follows:
Balance of Principal outstanding: 300K
Fair Market Value of Property = 325K
The taxpayer cost basis is 200K. What is the tax consequence of this foreclosure transaction as it seems to have a net gain.
Lastly, there are second mortgages on both properties but they haven’t issued a 1099-A OR 1099-C. What other implications should I count for, if any?
Thanks again for helping me with this.
I am hoping someone can help with the following scenario. Let’s say the lender issued a 1099-A on a rental property is a recourseable state with the following information.
Balance of Principal Outstanding = 300k
Fair Market Value of Property = 325K
The taxpayer cost basis in the property was 400K. What is the tax consequence of this foreclosure transaction? How will this be taxed differently if it was a primary residence property?
Scenario 2:
Again, recourseable loan but this time information is as follows:
Balance of Principal outstanding: 300K
Fair Market Value of Property = 325K
The taxpayer cost basis is 200K. What is the tax consequence of this foreclosure transaction as it seems to have a net gain.
Lastly, there are second mortgages on both properties but they haven’t issued a 1099-A OR 1099-C. What other implications should I count for, if any?
Thanks again for helping me with this.