1099A and Its Effect On The Tax Payer

Sandra you need BILLLLLLLLLLLLLLL

Please explain please James, Thanks.

Sandra

He is saying that that is a question for Trustpoint Bill to answer. I'm sure he will be along soon.

are two forms that have made news lately becuase of the foreclosure mess. You can read the instructions on the IRS website (irs.gov) to see detailed instructions. But generally speaking, if you have not been involved in a foreclosure or cancellation of debt from the lender, you will not be receiving either form. Yes, there are exception to this, but it gets too detailed to talk about the 1/2 of 1%.

Under the rules for calculating the tax consequences of a foreclosure, the taxpayer will need figure out the "selling price" so that gain or loss can be calculating. Depending on the type of loan, the taxpayer will utilize either the fair market value of the property or the outstanding loan balance on the property for the selling price. Both of these figures are reported on Form 1099-A. The outstanding loan balance is found in Box 2; the property's fair market value is found in Box 4. The date of the foreclosure is indicated in Box 1, and this will be used as the date the property was disposed of (that is, the "sale date"). Taxpayers will also need to know if the loan was a recourse or a non-recourse loan; the loan was probably a recourse loan if the bank has checked "yes" in Box 5 which asks "Was borrower personally liable for repayment of the debt?"

can I go eat dinner now? My ears are burning!!!

Thanks Bill and Kareng. Bill okay, wait do not go yet. I did some research to some extent, but I do not want this to affect my tax return, since I already have plans for it. My sister, who works in finance said that there are some contingencies that are in place to avoid negative ramifications, but I believe with enough information, I could understand fully, its effects and move forward. Thanks and God Bless.

Sandra

Not sure what you are asking exactly for.
But it is a form of the IRS that you as an employer will fill out or you supply to a self-employed person or a company. Stating what you received or paid for services rendered. Usually used for contract labor or services. You usually have a FEIN or they do, instead of the social security number.
How it affects either party is simple. It shows moneys or equivalent value paid to you or received by them and you have to file your income taxes based on it, unless disputed. If someone gave you one it has included in your income. If you are the one issuing it, it will help on your deductions. If you received it will affect your gross income. They usually do not have income taxes deducted as it is a non-employee form.
Hope this answers your question.

Sandra You know that now you owe Bill Three Pies.

You were quite helpful.

Sandra

the form you are talking about is generally called a 1099 but it is really a 1099-MISC. There are many different 1099s as the 1099s are an information series. 1099-A, 1099-B, 1099-C, 1099-INT, 1099-DIV, 1099-OID, 1099-MISc, etc.

Go eat dinner now.

Are you trying to get me in trouble. Too many pies are not good for the heart, LOL God Bless.

Sandra