Announcement

Collapse
No announcement yet.

Can He Claim Insolvency?

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Can He Claim Insolvency?

    I have a new client. He has two properties. One was his and wife's principal residence and the other was rental property. He separated from wife in 2009. The rental property had two mortgages. One of the mortages was cancelled and he got a 1099-C ($80k). When he divorced his wife, he moved to the basement of the rental property while the ex-wife lives with children in principal home.

    Please, which relieve does he have with the 1099-C income?

    Your advice is greatly appreciated.

    Kay, EA
    Tags: None
    #2
    It appears that insolvency is the only one available for the rental property. You have to look at the moment just before the mortgage was forgiven, add up all assets (including retirement) and deduct all liabilities.

    Comment

      #3
      Thanks Gretel

      Comment

      Previous template Next

      Disclaimer

      Collapse

      This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

      Working...
      X