1099-A Question Hi,
I had a house in TN, then had to move to CO due to a job change. The house had no equity, so we left it with a real estate investor who was doing lease purchases (the mortgage was still in our name). After 5 years, the real estate market fell apart there and they quit paying the mortgage. As the house was upside down by about 40K (not including realtor fees) and we now had another mortgage in CO, we let it go into forclosure.
Now I've received a 1099-A form which shows 168,000 as balance, and 148,000 as FMV. It is checked Yes, that I was personally liable. I have not received a 1099-C form at all.
I don't think this can be considered a primary residence as I haven't lived there in 2 of the last 5 years, so I could be responsible for claiming $20K income (although I would think I would get a 1099-C). At the same time if it is not a residence, then can I write off the capital loss? I don't really know how to classify the property. When the loan was secured it was for the house to be our primary residence, but...
Any help would be most appreciated.
Thanks,
NatalieC |