Client has a 1099-A which received 9/12/08 which is Box 2 - $63,748 and Box 4 is $37,400 - yes liable and a personal residence. BUT 2/4/09 received the 1099-C - so do I do the 982 with the $45883 debt canceled or wait till 09 to report that? Does anyone know this to finish a return.
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What tax year is the 1099C reported for? It probably is on a 2008 1099C. If so, it is reported in '08. You show the 1099A as a sale on Sch D. The sales price is the FMV reported. The t/p will have to give you the basis. If there is a gain, and the t/p qualifies, he can use the Sec.121 to exclude the gain. If there is a loss, it is personal and cannot be taken.
If the 1099C shows debt forgiven, and the t/p qualifies, use form 982 to exclude the debt due to qualified residence indebtness. Or, you might be able to exclude the debt due to insolvency. Otherwise, it is reported as income on line 21.You have the right to remain silent. Anything you say will be misquoted, then used against you. -
Letter in 09
A letter was sent to them from the United State Department of Argriculture in 2/4/2009 stating cancellation letter - amt of debt owed to rural development is $45,883
BUT the 1099-A is in 08. So do the 1099A or what?
ThanksComment
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The 1099A is a disposotion to be reported in 2008. The COD will be reported in 2009.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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Thanks
I thought so but this late - who knows what will be will be...so thanksComment
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