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Where is the debt relief on the 1099-A?

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    #1

    Where is the debt relief on the 1099-A?

    Entered the data from a clients 1099-A. Generated over $70K of Ln 21 form 1040 income. Strange thing, the $20K Fed tax owe does not display a "tax penalty" for Ln 76 is $0.

    What was all this talk and passage of debt relief laws?

    Nope, no 1099-C and I am NOT looking forward to breaking the news to my client.
    Tags: None
    #2
    The 1099A will generate a Sch D entry. Not line 21. The sales price is the FMV listed on the 1099A. The client will have to give you the basis he has in the property. Then it is determined if there is a gain or loss. If it is personal use property, then no loss is allowed. If there is a gain, and the t/p qualifies, you can use the Sec 121 to exclude the gain. Otherwise, the t/p will pay capital gains on the gain.

    HTH
    You have the right to remain silent. Anything you say will be misquoted, then used against you.

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      #3
      Wow, box checked and $77K of debt forgiven.

      Is this a great country or what?

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