Cancellation of debt

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  • cfsadvsr
    Junior Member
    • Apr 2006
    • 26

    #1

    Cancellation of debt

    T/P bought a newly-built home to flip in 2006. He was not able to rent or sell until 2008 when he did a short sale. The 1099-C shows the amount canceled as $150,000, interest included was $26,000, and the FMV was $390,000. How is this reported?
  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #2
    See pages

    14-10 & 11 in TTB.

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