Taxpayer received a 1099-C showing FMV at $280,000 and cancelled debt (box 2) of $155,735 Dates of closing on 1099-S and date of cancelled debt on 1099-C the same - 12/24/09 (Merry Christmas!!) Gross proceeds from 1099-S show $310,000 ($30,000 increase). Would the cancelled debt shown on 1099-C be lowered by $30,000 for calculations being home sold for more than FMV listed on 1099-C?
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1099-C and 1099-S
Bumping up hoping to get some feedback. Thanks!
Peg -
Hi peggy - there is a good worksheet on page 14-11 of TTB. Will that help you?Comment
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1099-C and 1099-S
The worksheet only refers to FMV from 1099-C (which in this instance is $280,000); however, taxpayer also received a 1099-S which shows gross proceeds (from short sale) of $310,000 so I am wondering if the amount of cancelled debt shown on 1099-C would be adjusted due to the mortgage company received $310,000 rather that the FMV of $280,000. The worksheet doesn't really answer my question or I am just too tired to realize that it is answering my question.......Comment
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