Question

jason's bank foreclosed on his office building when he stopped making loan payments. The loan was secured by the building when he purchased it three years ago for $650,000. jason's form 1099-a indicated that at the time of foreclosure was $620,000 and the fair market value )fmv) of the building was$660,000. additionally, box 5 was checked. if the building was checked. if the building is sold for the FMV, how much of jason's personal assets can the bank attempt to collect to satisfy the judgment

Answer 1

Correct option is $0

If building is sold for FMV, which is $660,000; it can be offset for loan of $650,000 so no need to collect amount from personal assets.