Does a Foreclosure Affect Your Tax Return

Often, the Internal Revenue Service (IRS

Do you have to report a foreclosure on your taxes?

The IRS requires you to report the foreclosure and the resulting gain or loss on a Form 4797. If the foreclosure results in a long-term capital gain, then you also need to include the amount on a Schedule D attachment to your personal tax return. However, if you incur a loss, Form 4797 by itself is sufficient.

Will I get a 1099 after foreclosure?

Homeowners will typically receive a Form 1099-A from their lender after their home has been foreclosed upon, and the Internal Revenue Service (IRS) receives a copy as well. The information on the 1099-A is necessary to report the transaction on your tax return.