Strange - 1099c

[oceanlovin'ea]

My daughter and son-in-law sold their house last year. They did a short sale. I am looking at the 1099C's last night. Each of them got one. These are from Chase Bank.

The one in my son-in-law's name has the debt description as an address in California with a FMV of $115,000. The one in my daughter's name has a different debt description, although I still think it is in California. It just has street address and Collinswood. The FMV is $159,000.
Both have the same amount for debt cancelled.

We live in FLORIDA!!

They refinanced the house and borrowed some extra money, which would not be considered Qualifed Principal Residence Indebtedness. But they are in the process of filing bankruptcy and I am sure would be considered insolvent for the rest of the debt.

I told them they needed to call Chase and ask for corrected 1099C. Especially since the FMV on the 2 forms are different. I will need to know FMV for the insolvency, won't I?

Can you believe that!!!!! What else will happen this year?

Linda

[oceanlovin'ea]

back to top

I just wanted to bring this back up the screen.

Does anyone think the wrong address on the 1099C is a problem?

Linda

[Jesse]

I'm not sure about the addresses, but I'd be concerned with the numbers being different. Why did they both receive a form, will the IRS be looking for twice the amount? And why are they different amounts?

I have a couple that received a 1099-A in each name and social security number. I'm not sure if I should attach an explanation or report it twice on the same return. It's the primary residence so we'll have the Section 121 exclusion but I'd like to eliminate any follow up letters.

It's so difficult to deal with the company that issues the forms.

[oceanlovin'ea]

both on mortgage

I think because they are both on the mortgage, they each receive the forms. Just in case they are not filing together, I guess.

IRS will mail out letters to each person on a joint return separately.

Only reason I can think of.

Linda

[oceanlovin'ea]

back to top

Just wanted to get this back to the top to see if anyone has any comments about the situation.

Thanks for your imput.

Linda

[Gretel]

The only thing I can say not doing any digging is that, yes, you will need to know correct FMV for insolvency. This scenario with two different FMV is crazy.

[S T]

1099C Reporting

Maybe this will assist you - from IRS 1099C instructions.

Multiple Debtors
For debts of $10,000 or more incurred after 1994 that involve debtors who are jointly and severally liable for the debt, you must report the entire amount of the canceled debt on each debtor's Form 1099-C. Multiple debtors are jointly and severally liable for a debt if there is no clear and convincing evidence to the contrary. If it can be shown that joint and several liability does not exist, a Form 1099-C is required for each debtor for whom you canceled a debt of $600 or more.

For debts incurred before 1995 and for debts of less than $10,000 incurred after 1994, you must file Form 1099-C only for the primary (or first-named) debtor.

If you know or have reason to know that the multiple debtors were husband and wife who were living at the same address when the debt was incurred, and you have no information that these circumstances have changed, you may file only one Form 1099-C.

Sandy

[oceanlovin'ea]

I know I only have to report the 1099C once but I was concerned because the debt description on each of the 1099's was different with different FMV and neither was the address of their home. So I would assume the FMV on the forms would be incorrect.

She will call Chase and see if she can find out what is going on. She broke her foot and has to be on crutches with no weight on her foot for 6 weeks. So she can call while she is sitting.

Thanks for your comments.

Linda