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Short sale on second home

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    #1

    Short sale on second home

    Taxpayer cosigned for house owned by his son. Purchase price -$200,000.
    Short sale for $70,000.
    Tax payer received 1099C for $150,000.
    Any suggestions on reporting the sale and cancellation of debt.
    thanks
    brian
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
    Tags: None
    #2
    Originally posted by Brian EA View Post
    suggestions on reporting
    TTB starting on p. 14-10 has good info & worksheets. Also Pub 4681.

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      #3
      More info needed.
      Did the other borrower get a 1099C for the same amount?
      What was the original loan amount?
      Was it ever refied?
      If TP cosigned it would be owned by both of them unless TP deeded his interest to son. That is another can of worms.
      Does the 1099C state recourse or non-recourse loan?

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