Discussion:1099 A for Estate

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Discussion Forum Index --> Basic Tax Questions --> 1099 A for Estate

Discussion Forum Index --> Tax Questions --> 1099 A for Estate

Bushmaster (talk|edits) said:

14 April 2008
To keep this short as I know everyone is busy.

I have an estate I am giving pro bono advice for that has a weird twist (to me anyway).

Decedent's estate doesn't have any money and received a 1099a from Freddie Mac. They forclosed and sold property at auction for ~$35,000 less than what was owed.

What do I do with this?

Kevinh5 (talk|edits) said:

14 April 2008
tell them that it is a sale of an asset

Bushmaster (talk|edits) said:

14 April 2008
OK. I was waiting for the 1099 C - Cancellation of Debt to drop triggering income.

Estates are not my thing.

Dennis (talk|edits) said:

14 April 2008
It is important to note that a debt of the estate is not the same as the amount decedent owed. In the case you describe, a 1099C may well be issued under decedent's social security number however it would be unlikely to result in estate income even were the estate solvent. This is a sale, however, and income tax consequence depends on whether foreclosure proceedings commenced before or after death.

adding search terms: "1099-C" deceased insolvent

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