If taxpayer received 1099-A, should a 982 and schedule D be filed showing sale of personal residence? I thought form 982 would be filed if taxpayer received a 1099-C showing cancellation of debt. This taxpayer is personally liable according to the 1099-A and outstanding debt is $200,000 more than FMV.
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1099-a
Bumping up hoping to get some feedback. Much appreciated!! -
Actually, if all that has been issued is a 1099A, then there is no need for a 982. There is no debt forgiven at this point. IF(and that is an IF because the lender may not forgive the debt) the lender forgives the debt at a later time, then the issue of debt forgiveness will be addressed then. They will issue a 1099C.
All that is reported from the 1099A is the sale of the property. The FMV listed is the sales price. Then you have to follow the procedure for reporting the sale depending on what type of property it was. Such as a personal residence vs rental property.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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good to see I did it right
That is the exact way I handled the one I had last week, which was my first one, and I did not know how to report it. I can't post to the board at work though for advice, my boss was actually wrong when I called for help, and after 45 minutes of digging for info and figuring out how to enter it correctly into the software, I ended up doing it correct. And I told the client to expect a 1099-C, which will be taxable.Originally posted by WhiteOleander View PostIf I'm wrong, please correct me, because I don't have the tax knowledge y'all have. Cheers!
admin@badfloridadrivers.comComment
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so if you follow the procedure as the sale of a home then section 121 exclusion would apply if the client qualifies right???Comment
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Yes if they would otherwise qualify.Originally posted by POCAHONTAS View PostYou have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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thanks white oleanderComment
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