1099?
Foreclosure has occured. Now the bank has a new REO. The owner had no captial gain! So where does this become a taxable "event"? And how can a 1099 be issued when their are no gains?
Foreclosure has occured. Now the bank has a new REO. The owner had no captial gain! So where does this become a taxable "event"? And how can a 1099 be issued when their are no gains?
The taxable event was debt forgivness which the IRS treats as taxable income.
As I explained below, in the majority of instances, the recipt of a 1099 is a non-issue.