Chapter 7 BK, 1099A & NOL's

[Y2KEA]

1040 filer owned numerous residential rental properties. The activity was generating NOL's for some time. Times got tough & he filed Bankruptcy under chapter 7. All debts were discharged in October of 2012 and properties were foreclosed.

TP now gets a 2013 1099A.
Box 1 date: 9/16/13
Box 2 balance outstanding amount: $397,000
Box 4 FMV amount: $300,000
Box 5 checked

How would you report this?
I'm thinking line 21 and back it out the BK discharge notation.

Also what happens to the NOL's? Did they get "discharged" also & therefore evaporate?

[Y2KEA]

Bumping

Anybody have an opinion?

[DonB]

1040 filer owned numerous residential rental properties. The activity was generating NOL's for some time. Times got tough & he filed Bankruptcy under chapter 7. All debts were discharged in October of 2012 and properties were foreclosed.

TP now gets a 2013 1099A.
Box 1 date: 9/16/13
Box 2 balance outstanding amount: $397,000
Box 4 FMV amount: $300,000
Box 5 checked

Just an idea to get you started-- I think the 1099A is showing you the disposition price ($397,000) from which you would subtract basis to determine capital gain??? And who reports this? Taxpayer or Bankruptcy Estate?

[S T]

I have a question, just curious

I know that periodically we receive 1099A forms, not always -
Are these 1099A forms actually reported to the IRS Computer and does IRS ever track them with a CP2000 notice?

I have 1099C forms, for sure that have been noted on a CP2000 notice, but never a 1099A form.

Sandy