For 2010 Tax Planning

[S T]

Question,

If t/p filed for a bankruptcy, and it was discharged (only a partial) and was final in 2010, t/p should NOT receive 1099C for cancelation of debt through the BK, if the creditor was named???

Trying to do some 2010 tax planning

Thanks,

Sandy

[WhiteOleander]

Well, t/p "shouldn't" receive a 1099C, but sometimes they do. If they do receive one, you file the form 982 indicating the debt was discharged in bankruptcy. They will not be taxed on it.

[BOB W]

Question,

If t/p filed for a bankruptcy, and it was discharged (only a partial) and was final in 2010, t/p should NOT receive 1099C for cancelation of debt through the BK, if the creditor was named???

Trying to do some 2010 tax planning

Thanks,

Sandy

Partial Discharge???? If he has positive assets he could be at risk for that portion........

[S T]

Bankruptcy

Thanks White Oleander and Bob W, that helps in the Tax Planning for 2010

Sandy