I'm learning about cancellation of debt. A taxpayer received a 1099-C showing $20,000 for being a co-sign on a mortgage for his father in law. The house was abandonded thus the 1099-C. My question is this: Does my taxpayer show the full $20,000 or split it between him and the father in law. Would they both report the full amount if they both received a 1099-C? I'm not sure if the father in law received a 1099-C or not.
As always, any help would be greatly appreciated. Thanks.
As always, any help would be greatly appreciated. Thanks.