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Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "1099C"

The 1099-C And Cancellation Of Debt From A Short Sale

Do you know about the 1099-C and cancellation of debt? When a home owner sells his or her property using a short sale a 1099-C is generated.The IRS issued a news release on Sept 17, 2007 trying to clarify the 1099-C in regards to foreclosures. Many homeowners are unaware of this situation and feel once the property is gone all financial obligations are wiped out. That may or not be a correct assumption. This will illustrate how the IRS determines your potential liability in a short sale or a foreclosure. How to figure cancellation of debt income 1. Enter the total amount of the debt canceled/forgiven. ____________________ 2. Enter the fair market value of the property from Form 1099-C, box 7. ____________________ 3. Subtract line 2 from line 1. If less than zero, enter zero. ____________________ Keep … Read entire article »

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What is a 1099-C?

What is a 1099-C? … Read entire article »

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Received Irs 1099c From A Short Sale Or Subsequent Foreclosure?

Now is time to address and resolve your IRS Tax Debt. The IRS has implemented unprecedented Leniency Programs and there has never been a better time to solve your IRS Tax problems than now. Here is a sample of a few IRS workout options available, Offer in Compromise An IRS Offer in Compromise is an IRS program that allows individuals to settle tax debt for less than the total amount originally owed. The IRS has strict requirements to qualify for an Offer in Compromise. The purpose of an Offer in Compromise is to find a compromised or settlement amount that works for you, the tax payer and the IRS. Penalty Abatement Penalty abatement is forgiveness of penalties associated with tax debt that have been added over the course of the debt. Sometimes the IRS … Read entire article »

Filed under: Insolvency

Canceled Debt and Form 1099-C

A brief look at the IRS’s definition of Canceled Debt as well as Form 1099-C. … Read entire article »

Filed under: Insolvency

I just received a 1099-C. Will this prevent or delay my IRS refund?

Any help from an expert would be so appreciated! I efiled my taxes on February 1 and my return was accepted by the IRS on February 2, 2009. Today, February 13, I received a 1099-c in the mail. I did not inlcude this 1099-c on my return because I had no idea it was coming. My expected refund based on the the tax return I efiled on February 1, is $5,763. The 1099-c is for $1300 I replugged all the information into turbo-tax and had I known about and reported the 1099-c my refund would have been $5,718 or $45 bucks less. What should I do? Will I still get my refund on-time if I don’t do anything NOW? Or will this cause a huge delay saying that I have neglected to report the 1099-c? Should I wait? … Read entire article »

Filed under: Insolvency

IRS Form 1099-C… A few questions?

1) I know one of the exemptions for paying tax on a 1099-C is insolvency- what is insolvency and does it apply only to businesses or to personal taxes as well? 2) After the 1099-C is filed by the creditor can they continue to try to collect the debt? … Read entire article »

Filed under: Insolvency

I filed my taxes, expecting a refund. In meantime received 1099C and am filing 1040X will this delay my refund

which turbo tax said I should have in a week or two. The 1099 C will not change my refund because I am claiming insolvency and do not have to change income. Will this change my chances of being audited? … Read entire article »

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I have foreclosed on a house. Will be getting a 1099-c. Is is better to prove insolvency or do bankruptcy?

I am also divorced at the time of the foreclosure. Will I also be responsible for the full amount of the 1099-c, or will it be split with the ex-spouse? We were divorced before the sheriff’s sale. My house was foreclosed on 1-3-2008. The house was refinanced in 2006 and is a first mortgage only. This is my primary residence. Sheriff’s sale was on 1-3-2008. House was refinanced in 2006 and is a first mortgage only. … Read entire article »

Filed under: Insolvency

I received 1099c Fr my Marriott timeshare that I foreclosed.I am qualified to file insolvency? Pls help.thanks?

Filed under: Insolvency

Rental property lost to foreclosure – is deficiency on 1099-C eligible for insolvency exemption?

Scenario: a piece of rental property owned by someone who reported the income/expenses on Schedule E is lost in foreclosure. The property was originally purchased at $175,000. Bank foreclosed on a loan balance of approximately $165,000. Bank bought the property at auction at $110,000, and a month later resold it at $115,000. The foreclosing bank has not yet sent a 1099-C and I am not sure if it will. If it does, does the 1099-C get reported as income, if so what kind (Schedule E? or forgiven debt?). Is the difference between purchase price and eventual foreclosure value eligible for insolvency exemption consideration? Or, could it be considered a capital business loss since it was effectively “sold” to the bank for much less … Read entire article »

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I settled a debt with a credit card company and have received a 1099C. Is there a way to show I am insolvent?

I became divorced and was unable to pay even the minimum amounts. I used a debt settlement company who told me I could show insolvency and not have to claim the 5,000 as income. But I don’t know how to proceed. … Read entire article »

Filed under: Insolvency

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