Personal residence foreclosure and/or abandonment

[cpacwt@yahoo.com]

Client left her personal residence in a “cash for keys” program where the mortgage company pays you cash to turn your keys over to their agent and leave the property. I have no 1099-A or 1099-C, she has not received any.

I am reading IRS pub 4681 but all of their examples are based on receiving a 1099-A or 1099-C. Do I wait until she receives these forms to report the transactions? I am not sure I have enough information to do otherwise. I did a search on here and it didn't turn up this issue with no 1099's issued.

Thank you for any help.

Wayne

[oceanlovin'ea]

First, welcome to the best board on the internet!

I would suggest she call the mortgage company and ask them if they are issuing something to her.
If she can't find out anything, I see 2 options:
1) Wait another month to file the return to see if something comes
2) If she doesn't want to wait, file the return and tell her that when she gets something from them you will have to amend the return to include that on the return.

Linda, EA

[cpacwt@yahoo.com]

Thank you. I've used the Tax Book for years but this is the first time I have used this forum. I appreciate your response.

Wayne