Debt forgiveness

[Super Mom]

I am seeing my first 1099 c on a house. Calling this a day. Will research more tomorrow. My ATX software doesn't have a 1099 c installed. I did find a form 982. Is that where it goes? This was her home, is it taxable? Thanks!!!

[veritas]

In The Tax Book

you will find your answers. They have a pretty good section starting on page 14-10.

The one thing I don't see the authors dealing with is if ineterst is included in the amount forgiven.

Or did I miss it?

[appelman]

Yes and no.

I am seeing my first 1099 c on a house. Calling this a day. Will research more tomorrow. My ATX software doesn't have a 1099 c installed. I did find a form 982. Is that where it goes? This was her home, is it taxable? Thanks!!!

To my knowledge, no software has a 1099A or 1099C. It is not a form for submission. Form 982 is filed only if you are excluding some or all of the COD income. Otherwise, COD goes in the appropriate place on the return, and capital gain or loss is dealt with in the usual way.

[Super Mom]

you will find your answers. They have a pretty good section starting on page 14-10.

The one thing i don't see the authors dealing with is if ineterst is included in the amount forgiven.

Or did i miss it?

that section in the taxbook is awesome! Thanks! I'm trying to figure out how you know if a loan is recourse or non recourse. I found online that nc is a non recourse state, does that mean all fha loans are non recourse?

[Super Mom]

Ok I looked at section 14 in the taxbook and looked up IRC 108 (e) (2) in reference to non taxability up to the amount of deduction lost. I'm thinking whatever portion of the forgiveness would be interest will be non taxable. I'm still trying to figure out how you know what is recourse and non recourse, should I just ask T/P to ask FHA? If the principal residence exclusion applied, I wouldn't have to worry about this mess, but is 2013.

[veritas]

What did the 1099-C

Ok I looked at section 14 in the taxbook and looked up IRC 108 (e) (2) in reference to non taxability up to the amount of deduction lost. I'm thinking whatever portion of the forgiveness would be interest will be non taxable. I'm still trying to figure out how you know what is recourse and non recourse, should I just ask T/P to ask FHA? If the principal residence exclusion applied, I wouldn't have to worry about this mess, but is 2013.

indicate in box 5?

[Lion]

Ask your client for her loan documents.

[appelman]

Yes, but not necessarily correctly.

indicate in box 5?

You may need to look at the loan documents. It can also depend on the state.