How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen, Tax Attorney
Category: Tax
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
Type Your Tax Question Here...
Ellen is online now
A new question is answered every 9 seconds

If we do a deed in lieu of foreclosure with a bank on a property

This answer was rated:

If we do a deed in lieu of foreclosure with a bank on a property that is standing for collateral on a loan will the bank send us a 1099 showing the loan amount as income to us?
*This chat is not intended as legal or tax advice. It is general information that may or may not apply to your situation and should not be relied upon

Is the property your primary residence?
Customer: replied 4 years ago.

No. This property is a real estate office and 3 rental properties combined
into collateral for the one loan.




Thank you for your response. Although I am a lawyer, my answers are information only and do not form an attorney/client relationship.


I will do my best to provide you with helpful information. If the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.



The lender will send a 1099 to all borrowers in the amount of the forgiven debt. Typically this would be taxable as ordinary income



I think this is what you wanted to know. Please let me know if I have answered your question or whether you would like further information...but please do not shoot the messenger.

Ellen and other Tax Specialists are ready to help you

Thank you very much for the positive rating and the bonus!

If I can be of assistance in the future, begin your question with: "For FiveStarLaw"