I have a client that filed Bankruptcy last year, their vehicle was reposed also. She says she's never received a 1099-C from any of her debtors. The US Bankruptcy Court paperwork states that it's Chapter 7, and says debtor is granted discharge under 727 of title 11, US Code.
The vehicle was used while selling real estate, so it is being used on a Schedule C as a business expense. She bought it for $46,525.00 on 8/22/05, she has another vehicle for personal use, but also used this on too. She had a log of her miles driven showing houses, meeting with clients, etc...in 2005 & 2006, now in 2007 I have to figure out how to get it off the Schedule C, she has taken prior depreciation of $20,921.00 and the program is showing another $5,121.00 for 07 (even though I said zero miles were driven) if I go down and say it was sold and put in the date of repossion, and zero dollars, it shows a loss of -$20,483.00.
Do I need to have her go to the bank where the loan was and ask what was left on the loan, and use this value as the sold dollars? Or should their be some type of paperwork from the bankruptcy that will help me in this?
I've read where I may need to file a 982 and is this what I need to file it and check box 1a because of the bankruptcy? My next question is will I be able to be file this return electronically if I file form 982?
Sorry never done a customer who has filed bankruptcy.
The vehicle was used while selling real estate, so it is being used on a Schedule C as a business expense. She bought it for $46,525.00 on 8/22/05, she has another vehicle for personal use, but also used this on too. She had a log of her miles driven showing houses, meeting with clients, etc...in 2005 & 2006, now in 2007 I have to figure out how to get it off the Schedule C, she has taken prior depreciation of $20,921.00 and the program is showing another $5,121.00 for 07 (even though I said zero miles were driven) if I go down and say it was sold and put in the date of repossion, and zero dollars, it shows a loss of -$20,483.00.
Do I need to have her go to the bank where the loan was and ask what was left on the loan, and use this value as the sold dollars? Or should their be some type of paperwork from the bankruptcy that will help me in this?
I've read where I may need to file a 982 and is this what I need to file it and check box 1a because of the bankruptcy? My next question is will I be able to be file this return electronically if I file form 982?
Sorry never done a customer who has filed bankruptcy.