Question

I have a question about 1099-A reporting. If my home was foreclosed and I received a Form 1099-A, what do I do?

Answer

Regarding 1099-A reporting, Form 1099-A reports the sale of your home in foreclosure. To figure the gain or loss:

  1. See 1099-A, Box 5 to figure the sales price — also called the amount realized. If the box is marked “Yes,” you have a recourse loan. If it’s marked “No,” you have a nonrecourse loan.
    • If you have a recourse loan, your sales price will be the lesser of these:
      • Outstanding debt immediately before the foreclosure — 1099-A, Box 2
      • Fair market value (FMV) of the foreclosed property — Box 4

Also, include anything else you received from the sale.

  • If you have a nonrecourse loan, your sales price will be the full amount of the outstanding debt immediately before the foreclosure. This applies even if the FMV of the property is less than the outstanding debt.
  1. Subtract your adjusted basis in the property from the sales price.

Report the gain or loss on Schedule D. If there’s a gain, you might be able to exclude it if it’s your main home. If there’s a loss, you can’t deduct it.

 

Related Topics

Related Resources

I have a question about reporting pensions. How do I go about reporting pension amounts from Form 1099-R?

Learn more about reporting pension amounts from form 1099-R with help from the tax experts at H&R Block.

I have a question about 1099-MISC Box 3 — How do I report a Form 1099-MISC with an amount in Box 3?

Discover how to report a Form 1099-MISC with an amount in Box 3 with help from the tax experts at H&R Block.

I have a question regarding taxes qualified dividends. After I filed my return, I received a revised Form 1099-DIV that

Did you receive Form 1099-DIV after filing your taxes? Qualified dividends may affect your return. Learn more from the tax experts at H&R Block.

If I sold some employee stock shares through an online brokerage and taxes were taken out at the time of the sale, do I

If you sold stock through an online brokerage and had taxes withheld, you'll need to use Form 8949. Learn more from the tax experts at H&R Block.