Foreclosure Solutions – What to Do If You Receive a Form 1099-C From Your Lender? Smart Tax Tips
The foreclosure process can affect your tax return. It is important to know that if you receive a Form 1099-C (or sometimes 1099-A), there is no a deficiency judgment (you cannot have both). It is good news. The debt canceled is considered an income (it is a phantom income you never see) and you have to pay taxes on it. However, there are exceptions.