Real Estate Law
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Generally someone would receive a 1099-C if the lender wrote off any forgiven amount on their taxes as a loss. The borrower then has to recognize that as income and pay taxes on it. But if you got a 1099-A, that is just a notice that the lender has retaken possession of the property as a secured party. You don't do anything with this with regard to your taxes for the year, you just keep it in your records.
So at this point, the lender may not issue a 1099-C as it is entirely up to them as to whether they do so or not and this is a good thing for you..
You are very welcome. It is a good thing because you didn't get a 1099-C...yet... So you don't owe any "cancellation of debt" income tax. The IRS says that they can issue a 1099-C for up to "36 months from an identifiable event". So I take that to mean that once you pass that 3 year window since the DIL, you are in the clear if they haven't issued a 1099-C.
Yes, the amount outstanding when you did the DIL is the amount that they agreed to "purchase" the property from you for. They then calculate what the fair market value of the property is through an appraisal, or a sale, and then that is the difference that is potentially cancellation of debt income...