1099-a & 1099-c

[Brian EA]

Taxpayer receives the following.
1099-A; Box 2- $160,000.
Box 4 $100
Box 5 The borrower is personally liable for repayment of the debt.
Box 6 Address of property

1099-C
Box 2 $105,000
Box 3 $3500- interest that is included in box 2
Box 4 Address of property
Box 5 Borrower is personally liable for repayment of the debt.
Box 7 Fair market value of property is 0.00

Taxpayer says that both were Rental properties.

Need advice how to handle this.
thanks
brian

[solomon]

The first thing I would do is to inquire regarding the FMV.

[DaveinTexas]

Short sale or foreclosure?

Were these properties short sold or foreclosed upon?

[Brian EA]

1099A Property was a foreclosure. Taxpayer walked away from property. The FMV on the 1099A is $100.
Here is the kicker. His last tax preparer did not report the income as a rental. She reported it on Sch C as a business. He was a full time AC Technician. Depreciation was also claimed.
Where would this transaction be reported?

1099C Property was his personal residence. Although I filled out form 982 the amount still appears on line 21 of the 1040. Any suggestion how I can remove it. My software (Drake) allows me to enter 1099C info directly on the form.

thanks
brian

[ChEAr$]

1099C Property was his personal residence. Although I filled out form 982 the amount still appears on line 21 of the 1040. Any suggestion how I can remove it. My software (Drake) allows me to enter 1099C info directly on the form.

thanks
brian

Where? Where does Drake allow direct entry of a 1099c? And do they also have entry for the 1099 A?

[Davc]

1. Type 99C or go to the income tab, lower left corner.

2. No.