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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>What was foreclosed? When faced with a lender’s 1099c you need to consider section 108 of the tax code, Income from Discharge of Indebtedness. There are exclusions depending what is discharged. Also, a 1099c does not always mean the debt is forgiven; the lender is only reporting the debt as unlikely collectible. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Jeff <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Marcus Fry<br><b>Sent:</b> Wednesday, April 13, 2016 5:43 PM<br><b>To:</b> wsbarp@lists.wsbarppt.com<br><b>Subject:</b> [WSBARP] 1099C- Foreclosure<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="_GoBack"></a>Anyone have any experience in dealing judicial foreclosures and 1099Cs issued in connection with such foreclosures? I am particularly interested in situations where lender credit bids the judgment at the foreclosure sale. Does a credit bid establish fair market value of the property?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Marcus J. Fry<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Lyon, Weigand & Gustafson, P.S. <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Confidentiality: </span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges. If you are not the intended recipient, you are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited. If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding function on your e-mail system) and then deleting the e-mail.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>