Discussion:Consumer Questions about 1099-C Canc of Debt
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Discussion Forum Index --> Consumer Questions --> Consumer Questions about 1099-C Canc of Debt
| 13 February 2009 | |
| The following posts were moved out of two existing discussions on the tax forum. One of the questions is new as of 3/9/09. | |
Thejoester (talk|edits) said: | 7 February 2007 |
| I am in a similar situation. I filed chapter 7 and was discharged. I have recieved two 1099-c forms from the credit union that I had a car through and a line of credit that was included in the bankruptcy.
I read the tax law you quoted ( Sec. 108(a)(1)(A) ) and it states that the income is excluded in a title 11 case, how does this differ from my title 7? Thanks for any help you provide | |
| 7 February 2007 | |
| Title 11 refers to the US Code on Bankruptcy. Not the same question as Chapter 11 or Chapter 7 (which are chapters in Title 11). | |
| 16 February 2007 | |
| I just have a question. My son I am guessing did not pay some credit card bills and Citi Bank sent 3 1099-C forms written as
Account # Date of cancellation Amount What is this and does he have to file these papers? It was not on a regular form. It totals in the neighborhood of $7000. I did his taxes where he only grossed $13,000 | |
| February 16, 2007 | |
| He's grossed more than that now I'm! That goes on line 21 for other income I hate to tell you. You knew that, but hoped you were wrong. Unless he's insolvent or bankrupt. | |
| 16 February 2007 | |
| If you have already filed his taxes for 2006 then his return will have to be Amended to include the $7,000 in income, unless he was insolvent when he received the 1099-C's. Better consult a tax professional. | |
Death&Taxes (talk|edits) said: | 16 February 2007 |
| But then can he find out how much of the 7K was interest? That interest probably was personal and could not be deducted and should not be income. | |
| 16 February 2007 | |
| Thank you for your answers. He was a waiter and had lost his job. He will have to pay the $1090 then. I just didn't understand. I appreciate you taking the time to help. | |
| 16 February 2007 | |
| The paper is just like a piece folded in half.
Account # 000000 000 0000000000 2 $3176 Date 02/02/06 1 Credit Card 5 It has no boxes on it It looks just like the above. So I didn't know if that was all taxed or not and he received 3 of them | |
Lsizerfvsu (talk|edits) said: | 29 April 2007 |
| Can someone answer this? If you complete a cancelation of debt form 1099-C, are you still obligated to pay the lender who sent you the form the full amount of what was on the form? | |
| 29 April 2007 | |
| Most likely not....the 1099-c is reporting that which is uncollectible. But there may be legal ramifications of this...if you repay the amount on the 1099-c, then you are allowed the deduction from payment of this and they must pick it up as income...but an attorney needs to advise whether or not you are going to have to pay it in the future | |
| 31 January 2008 | |
| ariean77
Can someone help me? I am disabled and draw disability. My husband has to pay taxes on my benefits yearly. I have no income so to speak. I received a 1099-C for less than 2600.00 and I don't know what to do. | |
| 31 January 2008 | |
| have you discussed this with your tax preparer, Ariean? They should know exactly what to do. | |
| 31 January 2008 | |
| Ariean77: You would have to report it as income unless you are insolvent or filed for bankruptcy. | |
| 1 February 2008 | |
| I'm not sure if this is an odd case or not, but my wife and recieved a 1099-C for a debt that was cancelled on 06/28/2007. Our bankruptcy was discharged on 09/2005. First off, isn't that too long to wait to provide me with a 1099-C? And secondly, because box 6 is checked as Bankruptcy, do I need to complete form 982? I really appreciate any help we can get as we have already filed our taxes for 2007. Thanks! Michael | |
| 1 February 2008 | |
| If you receive a 1099 C (cancellation of Debt ) and are eligible for an exclusion due to bankruptcy or insolvency, I highly recommend you complete form 982 "Reduction of Tax Attributes due to discharge of indebtetness " and attach to your tax return. This will generally keep IRS off your back because it has the affect of nullifying the 1099 C from received . | |
| 9 March 2009 | |
| please this just a question because I don't know how to post a question
My 2 investment properties in Minnesota. They are being foreclosure in 2007. I think the first lenders look their houses back (they issued me 1099A in 2007 indicates the homes are a little bit over the current market value) I think the second mortgages got nothing. They still send me statement though I filled chapter 7 in 2008 and got discharge. My question is my tax accountant did not include the different in 1099A as income in 2007 tax year. I did not receive 1099C from the second mortgage. Can I still file 1099C as a ghost income for my 2008 tax year? or second mortgage still actively try to collect money from me. I am just barely make it and still have to pay for child support. Any suggestion and and recommendation will be greatly appreciate and I definately will find a professional help. thanks in advance | |
Gabi kansas (talk|edits) said: | 6 February 2010 |
| I had a personal Chapter 7 bankruptcy in 2008. I received a 1099-c dated 12/26/2009. This was for a credit card debt that was included in my bankruptcy. What do I do with with this? The 1099-c says it was not part of bankruptcy, but it was so this was sent in error. | |
| 10 February 2010 | |
| After completing the Deed in Lieu process, I received a 1099 A that showed the amount of dept ($276,500) and a FMV ($220,000). I have not received a 1099 C yet. Can I assume that the my COD income to be added will be $56,500? OR, will I receive the 1099C once the property sells? If it sells for 150K will the COD be $126,500? Bottom line...is the COD income the equal to the dept amount minus FMV....or the dept amount minus the sales price. | |
Stan the Man (talk|edits) said: | 12 February 2010 |
| Do you file a form 982 with the 1065 and claim the real property exception as shown on line 1d of the 982 and not include the cod income in the 1065? Or do you include it in income and still file the 982? Or do you report the entire cod income in the LLC 1065 and let each partner include a 982 with his own return claiming that its qualified for the exclusion since it was real property acquired in a business transaction and check the line 1d box on a 982 filed with the 1040 of each partner/member of the LLC? The debt relieved was the amount the lender let go because the lender repurchased the property from the LLC in a foreclosure action for less than the mortgage balance. The LLC is a real estate developer. Also,the LLC had a big loss which was a little larger than the forgiven debt. The big loss comes about when comparing the amount realized to the property basis. | |
