Call it laziness or call it ignorance, but I have a terrible time with 1099-Cs. So maybe you can help me here...........Client finances used pickup, drives it home. Next day returns pickup to dealer saying he realizes he can't afford it. Comes 1099-C for $5000. Taxable?
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Well, since this was a car sale, you client might not be able to rescind the contract, but since the vehicle was returned to the dealer:
Shat did the dealer do with this vehicle?
Did the dealer accept the return of the vehicle?
How much did the dealer resell the vehicle for?
This individual may need an attorney to sort this out and see if he could reascend the contract for some reason or determine the exact loss suffered by the car dealer and finance company.
Certainly there will be some monies due the car dealer and finance company, but certainly not the full amount. But that is not a tax question. -
Dealer said
it couldn't be returned but resold it when it was. Don't know resale price, assuming less than client paid.Originally posted by gkaiseril View PostComment
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I expect that the amount of the canceled debt should be the unrecovered amount. And that will take an attorney to resolve.Comment
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