JanMi Posted March 19, 2012 Report Share Posted March 19, 2012 My understanding on a 1099-A is that nothing is to be reported to the IRS by the taxpayer at this time as it is only information received by the mortgage holder. When the taxpayer receives a 1099-C then the income is reported on the required forms. Please let me know if I am understanding this correctly, as I have a client with a 1099-A and I've read Pub 4681 and nothing there states it's to be reported until a 1099-C is received. I would appreciate any help with this. Thank you. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 19, 2012 Report Share Posted March 19, 2012 There is much more involved than Pub 4681. There is a lengthy discussion in this thread... Your tax preparation software should also lead you in the direction of the correct way to report this for your client. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 19, 2012 Report Share Posted March 19, 2012 >>I've read Pub 4681 and nothing there states it's to be reported<< Page 10 says, "The foreclosure or repossession is treated as a sale from which you may realize gain or loss." So you report it the same way you would have treated a regular sale. It might be a sale of business or rental property, perhaps releasing suspended losses. Or it could be a home or personal use property, with non-deductible loss or Section 121 exclusion of gain. Whatever. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 19, 2012 Report Share Posted March 19, 2012 Short answer is you report the sale when client receives 1099-A, and report the COD when client receives 1099-C. They are two separate transactions. 1 Quote Link to comment Share on other sites More sharing options...
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