Re: 1099A Received from Wells Fargo, Tax Implications?

Posted by Joe K. on January 29, 2008 at 07:14:53:

In Reply to: Re: 1099A Received from Wells Fargo, Tax Implications? posted by Joe on January 28, 2008 at 18:35:55:

Well, after speaking to a tax professional this morning, it appears that I do not need to report anything as the debt was extinguished and I did not receive any economic gain from the foreclosure. In fact, 3/4 of my second HELOC was paid off during the foreclosure leaving a 10,400 balance which I might receive a 1099C for, but I plan to settle that debt. The only time there would be tax implications from what I was told if the FMV was LESS than than the amount owed, then I would have COD and would be responsible for that amount. In that case, between the Mortgage Debt Relief Act of 2007 and insolvency at time of foreclosure, it would be considered non-taxable.

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