Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I sold my house on a short sale last year and I receives a…

Customer Question
I sold my house...

I sold my house on a short sale last year and I receives a 1099-c and line 2 line 7 is marked $amount of debt discharded was $200.551 and line 4 says mortage- short sale and line 5 says marked with a x. line 6 is marked F.

Accountant's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Illinois

Accountant's Assistant: Has any paperwork been filed?

Yes

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Yes line 7 was marked fair market as $0000

Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
3/8/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
Experience: Taxes, Immigration, Labor Relations
Verified
Illinois is generally considered a recourse state.That actually means - if the property is sold for less than the mortgage balance whether a "short sale" or "foreclosure".The lender can come after you for any deficiency.That is why box on line 5 is checked.The amount reported in box 2 $200,551 is considered COD income - cancellation of debt income.In generally - it is taxable - but you might be eligible to exclude that debt from gross income if for instance you are insolvent.Let me know if you need any help with verification.
Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
33,115 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I sold my house on a short sale and got a 1099-C and on line
I sold my house on a short sale and got a 1099-C and on line 1 is the date of 06/05/2017. Line 2 has $200,551 as the amount of the debt discharded. Line 4 has Mortage short sale. Line 5 ischecked that… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
My father passed away 1/1/2017. My Mom in 2001. I had to
My father passed away 1/1/2017. My Mom in 2001. I had to sell his home as a short sale. That closed on 8/30/17. My Mother was never on the loan to that home. Ditech was a Second of 75k. Upon the sale,… read more
socrateaser
socrateaser
1,031 satisfied customers
My husband and I did a quick claim deed in lieu of
my husband and I did a quick claim deed in lieu of foreclosure. We purchased the house for 50,000.00 and have rented it out until we did the quick claim deed. The realator sold it for 49900 on March 2… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
GINA...I have a 1099-C rental property that I sold as a
GINA...I have a 1099-C for a rental property that I sold as a short sale. … read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
How do I figure the Cost or other basis house inherited and
How do I figure the Cost or other basis for a house inherited and sold in 2014 to input on form 8949, sec. 1, part (e) ?… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
If you are an accountant on Just Answer with the initials
If you are an accountant on Just Answer with the initials S.A., please don't answer. I'm merely writing this post to confirm our discussion. Thank you. Please don't answer this unless you're a U.S. CP… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Received a form 1099-A foreclosure that was not my principal
Received a form 1099-A for a foreclosure that was not my principal residence (helped somebody that I shouldn't have). The amount on line 2 of 1099-A Balance of Principal outstanding is $107,0056.12. T… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Hi Megan, I have a client who: BOT a principal residence
Hi Megan, I have a client who: BOT a principal residence in 1997 for $329.000 and lived in it. 2004-2012 it was rented out. 2012 he lost it in a short sale. He purchased it for $329,000, it was short-… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
i received 2 forms 1099-c on a short sale for rental property,
i received 2 forms 1099-c on a short sale for rental property, one is non recourse, the larger one, the other is recourse, do i have to report the non-recourse as income?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Hi, my question is this. I did a short sale on my home last
Hi, my question is this. I did a short sale on my home last year, because I could no longer pay for it any more. I got a 1099-A form in the mail. Box 2 says balance of outstanding 70,00. Box 4 says fa… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have a real estate property which I have used as a music
I have a real estate property which I have used as a music recording studio. It's not my primary home. The property was purchased for $355,000. The property was foreclosed. I received a 1099 C for for… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
1099c cancellation of debt from foreclosed Timeshare.
My client has a 1099-C cancellation of debt form from a Timeshare that was foreclosed. The amount of debt was $18,000 and the fair market value was $24,449. Box 5 is checked and Box 4 says Vacation Ow… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
In 2008 we paid $289,900 for an investment/second home condo.
In 2008 we paid $289,900 for an investment/second home condo. Paid 10% down. We believe the lender, Wells Fargo, the seller and selling agent, committed fraud by failing to disclose deed restrictions … read more
socrateaser
socrateaser
1,031 satisfied customers
Hello, My girlfriend foreclosed on her condo last year. We
Hello, My girlfriend foreclosed on her condo last year. We just got a 1099-C for 70k. 1. I thought the gov stopped 1099'ing for primary residence foreclosures or short sales? 2. Is there anyway around… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
Our primary residence was foreclosed upon in July 2010. Our
Our primary residence was foreclosed upon in July 2010. Our outstanding mortgage was $304,000. We learned that our house sold for $204,000 in November or December 2010. We expected to receive a 1099-C… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
hello my name is mark. here we go i will try to explain
hello my name is mark. here we go i will try to explain this, my principal home i got back 23 years ago was for 175,000 this is my only home now with kids and a wife i refied a coup[le of times , to t… read more
Lev
Lev
Tax Advisor
33,115 satisfied customers
I received a form 1099-A for my principal residence which was
I received a form 1099-A for my principal residence which was sold via a short sale in Feb.2009. The amount on line 2 of 1099-A Balance of principal outstanding is $170,539.12 and the amount on line 4… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Hi, Thanks for the time in answering my question. We (me
Hi, Thanks for the time in answering my question. We (me and my spouse) purchased a home on Nov. 2004 for about $380,000. We used one line of credit and again we consolidated the lone about a year aft… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x