Bankruptcy

[bekzm]

If a client got a 1099-A and the FMV is more than the principal - then I understand that it was not taxable BUT while talking to her - she at the end told me she filed bankruptcy in Nov 07 and free of everything. I think I understand that you have to file a complete different tax returns - short years or something. No 1099-c or nothing - just the 1099A and now I'm sick that I think I should be doing a different tax return due to all the interest paid on the original house and vacation home and the taxes? Do I tell her to find someone else or am I wrong about the filing of tax returns on bankruptcy? I know nothing about them and it is too late to be thinking of it
Help

[taxmandan]

Look at the BK paperwork

If a client got a 1099-A and the FMV is more than the principal - then I understand that it was not taxable BUT while talking to her - she at the end told me she filed bankruptcy in Nov 07 and free of everything. I think I understand that you have to file a complete different tax returns - short years or something. No 1099-c or nothing - just the 1099A and now I'm sick that I think I should be doing a different tax return due to all the interest paid on the original house and vacation home and the taxes? Do I tell her to find someone else or am I wrong about the filing of tax returns on bankruptcy? I know nothing about them and it is too late to be thinking of it
Help

If you are going to assist her, you need to see the paperwork on the BK. This may have been a debt that was NOT included in the BK, it may have been forgiven prior to filing. Did she file CH. 7 and has it been discharged? If she filed the BK in Nov 07 it may not yet be finished. If she won't provide the papers, drop her as a client, too many questions for you to figure it out alone.