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Whether or not you have a capital gain depends on whether or not what you purchased the house for is less than or greater than the FMV at the date of foreclosure
It has nothing to do with the loan balance
ok. I thought this may ... "May" help in that if the lender says they got the property and it is worth / fmv the loan ... then they will not issue a 1099 c ... since the 1099 A says the home was worth equals the loan balance ... and all this sale / fmv value is on the 1099 A. furhter ... all sale / fmv on 1099 A may be capital gain ... where as the 1099 c would be ordinary income. in this secnario ... the more on the 1099 A and less on the 1099 c ... makes sense (ie. capital gain over 1 yr is better) .... correct ?
The 1099-A and 1099-C are two different things
And you only have 1099-C income to the extent that there is an unpaid balance after the foreclosure takes place. And, if it's non recourse debt then there is no cancellation of debt income
looks like it is better to have no 1099c or the less 1099 c the better ... correct
That is correct
and ... what is the generic or typical case ... when the mtg lender does not have to issue a 1099 C
If they don't have to issue a 1099-C they just don't issue it
when is the typical case ... when they do not have to issue one. can be a generic case / answer
If the loan is non-recourse or if the value of the property satisfies the debt
ok. this looks like ... if the 1099 A ... has both the FMV and the loan balance the same ... and they say the value satisfies the debt ... then they may not have to issue a 1099 C ... correct
great. you were very helpful. done. by. and I will give you an excellant rating
Thanks so much!