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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3614
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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If I am doing a deed-in-lieu on my house, can u tell me what

Customer Question

If I am doing a deed-in-lieu on my house, can u tell me what the taxes are I would have to pay if I owe 74,000 and how long do I have to pay it??
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.In a deed-in-lieu of foreclosure deal, the title is usually conveyed to the lender in return for the lender canceling (forgiving) the borrower's outstanding mortgage debt or foregoing any further attempts to collect on the debt.On Form 1099-A, the lender reports the amount of the debt owed (principal only) and the fair market value of the secured property. You, the debtor, use these values to determine a gain or loss on the disposition of the property. The Form 1099-A need not be filed as part of your return. The Form 1099-A does NOT report a forgiven or cancelled debt.The Form 1099-C reports cancelled (forgiven) debt. On Form 1099-C, the lender reports the amount of the canceled debt. If the lender's acquisition of an interest in the secured property (or the debtor's abandonment of the property) and the cancellation of the debt occur in the same calendar year, the lender may issue a Form 1099-C only. See Topic 431 for additional information on Form 1099-C.If you receive a Form 1099-A, or Form 1099-C containing incorrect information, contact the lender to make corrections. For additional information on foreclosures and abandonments, refer to Publication 544, Sales and Other Dispositions of Assets.In certain situations, you may exclude cancellation of debt income in whole or in part. For example, if you have cancellation of debt income on your principal residence, you may be able to exclude part or the entire amount canceled from your income. let me know if I can assist you further.Thank you and best regards,Barb
Expert:  Barbara replied 1 year ago.
Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb