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    Camc of Debt

    California

    Taxpayer purchased the Personal Residence in 2006 and two loans were funded at closing, one primary and one HELOC for almost 100% financing. Both with Citi Mortgage

    Taxpayer in 2009 short saled the home, the primary 1st deed of trust accepted the short sale so there shoudl be no 1099C (accoridng to the documents ), however, same lender issued a 1099C for the HELOC loan (which was part of the original purchase) They had to sign off for the short sale to close. No refinances, no new loans, these both were original loans, and the paperwork indicates that.

    Box 4 - shows Home Equity

    Box 5 - Personally liable for repayment of the debt is checked YES

    Is the only recourse to use the form 982 for insolvency to offset this 1099C

    Gotta Luv the Loan Brokers, Banks and Finance People.

    Thoughts or suggestions would be really welcomed

    Sandy

    #2
    Any Guidance on

    how to treat the 1099C on the HELOC loan, which was part of the original purchase and 100% financing?

    Thanks

    Sandy

    Comment


      #3
      Why couldn't you treat it as qualified principal residence indebtedness?

      It was used to buy and is secured by the principal residence and it is not more than the cost of the principal residence plus improvements.
      http://www.viagrabelgiquefr.com/

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