Erin's bank foreclosed on her office building when she stopped making payments on her loan. The loan was secured by the building when she purchased it three years ago for $750,000. Erin's Form 1099-A is shown below. If the building is sold for the fair market value (FMV), how much of Erin's personal assets can the lender attempt to collect to satisfy the judgment? (Answer choices are below the image.) LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no OAK RIDGE BANK 301 AUSTIN STREET YOUR CITY, YS XXXXX (XXX) 555-5678 LENDER'S TIN XX-XXXXXXX BORROWER'S name ERIN HERNANDEZ Street address (including apt. no.) 308 VIRGINIA AVENUE CORRECTED (if checked) BORROWER'S TIN XXX-XX-XXXX Account number (see instructions) XXXXXXXX Form 1099-A Rev. 1-2022) City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX (keep for your records) $615,000 $595,000 $20,000 SO (None of Erin's personal assets) OMB No. 1545-0877 Form 1099-A (Rev January 2022) For calendar year 2023 1 Date of lender's acquisition or 2 Balance of principal knowledge of abandonment 05/01/2023 outstanding Acquisition or Abandonment of Secured Property $ 615,000.00 4 Fair market value of property This is important tax information and is being fumished to the RS you are required to file a retum, a negligence penalty or other sanction may be imposed on you taxable income results from this transaction and the IRS determines that it has not been reported. Department of the Treasury-Internal Revenue Service $ 595,000.00 5 checked, the borrower was personally liable for repaym of the debt V 6 Description of property 108 WOODLAWN STREET YOUR CITY, YS XXXXX www.is.gov/Form1099A Copy B For Borrower
Erin's bank foreclosed on her office building when she stopped making payments on her loan. The loan was secured by the building when she purchased it three years ago for $750,000. Erin's Form 1099-A is shown below. If the building is sold for the fair market value (FMV), how much of Erin's personal assets can the lender attempt to collect to satisfy the judgment? (Answer choices are below the image.) LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no OAK RIDGE BANK 301 AUSTIN STREET YOUR CITY, YS XXXXX (XXX) 555-5678 LENDER'S TIN XX-XXXXXXX BORROWER'S name ERIN HERNANDEZ Street address (including apt. no.) 308 VIRGINIA AVENUE CORRECTED (if checked) BORROWER'S TIN XXX-XX-XXXX Account number (see instructions) XXXXXXXX Form 1099-A Rev. 1-2022) City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX (keep for your records) $615,000 $595,000 $20,000 SO (None of Erin's personal assets) OMB No. 1545-0877 Form 1099-A (Rev January 2022) For calendar year 2023 1 Date of lender's acquisition or 2 Balance of principal knowledge of abandonment 05/01/2023 outstanding Acquisition or Abandonment of Secured Property $ 615,000.00 4 Fair market value of property This is important tax information and is being fumished to the RS you are required to file a retum, a negligence penalty or other sanction may be imposed on you taxable income results from this transaction and the IRS determines that it has not been reported. Department of the Treasury-Internal Revenue Service $ 595,000.00 5 checked, the borrower was personally liable for repaym of the debt V 6 Description of property 108 WOODLAWN STREET YOUR CITY, YS XXXXX www.is.gov/Form1099A Copy B For Borrower
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Erin's bank foreclosed on her office building when she stopped making payments on her loan. The loan was secured by the building when she purchased it three years ago for $750,000. Erin's Form 1099-A is shown
below.
If the building is sold for the fair market value (FMV), how much of Erin's personal assets can the lender attempt to collect to satisfy the judgment? (Answer choices are below the image.)
LENDER'S name, street address, city or town, state or province, country, ZIP or
foreign postal code, and telephone no.
OAK RIDGE BANK
301 AUSTIN STREET
YOUR CITY, YS XXXXX
(XXX) 555-5678
LENDER'S TIN
XX-XXXXXXX
BORROWER'S name
ERIN HERNANDEZ
Street address (including apt. no.)
308 VIRGINIA AVENUE
CORRECTED (if checked)
BORROWER'S TIN
XXX-XX-XXXX
Account number (see instructions)
XXXXXXXX
Form 1099-A (Rev. 1-2022)
City or town, state or province, country, and ZIP or foreign postal code
YOUR CITY, YS XXXXX
(keep for your records)
$615.000
$595,000
$20,000
OSO (None of Erin's personal assets)
1 Date of lender's acquisition or
knowledge of abandonment
05/01/2023
3
OMB No. 1545-0877
Form 1099-A
(Pen. January 2022)
For calendar year
2023
2 Balance of principal
outstanding
www.is.gov/Form1099A
Acquisition or
Abandonment of
Secured Property
$ 615,000.00
4 Fair market value of property
$ 595,000.00
5 checked, the borrower was personally liable for repay
of the debt
6 Description of property
108 WOODLAWN STREET
YOUR CITY, YS XXXXX
This is important tax
information and is being
furnished to the IRS. I
you are required to file a
return, a negligence
penalty or other
sanction may be
imposed on you d
taxable income results
from this transaction
and the IRS determines
that it has not been
reported.
Department of the Treasury - Internal Revenue Service
Copy B
For Borrower
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