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Discussion Forum Index --> Advanced Tax Questions --> 1099-C Mortgage Cancelletion
Discussion Forum Index --> Tax Questions --> 1099-C Mortgage Cancelletion
Felixtax3232 (talk|edits) said:
| 23 March 2008
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| I am unfamiliar with the handing of 1099C cancellation of debt for a mortgage on a personal residence. My client received a 1099-C for $116,279. How do I determine if there is a taxable gaib or loss from this. What do I need to find out? Thanks
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Solomon (talk|edits) said:
| 23 March 2008
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| Probably not taxable under the new Mortgage Relief Act. File the amount on Form 982.
FAQ.
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Ztom (talk|edits) said:
| 23 March 2008
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| I agree, but then looking at the Form 982 it does not tell you where to put this amount on your tax return, only where to list it on 982. I assume it should flow over to Other income line 21 to offset the 1099 C that is suppose to go there.
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Solomon (talk|edits) said:
| 23 March 2008
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| Why would non-taxable income flow to Line 21 - that is the purpose of the 982.
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DZCPA (talk|edits) said:
| 23 March 2008
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| Non taxable 1099C amountsgo on form 982
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EZTAX (talk|edits) said:
| 23 March 2008
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| In order to answer we need to know if debt was recourse or non-recourse.
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Taxwizard (talk|edits) said:
| 24 March 2008
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| Felix, was the debt classified as home acquisition debt on his principal residence for tax purposes? If so, there may be an exclusion available.
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Martsem (talk|edits) said:
| 7 April 2008
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| Does the mortgage debt relief act apply to form 1099a (abandonment) as well? Lender sent my client a 1099a showing line 2 debt to be in excess of line 4 fmv of property. Will the difference between the debt owing on line 2 and the fmv (approximately $84k) be excludable from income if this debt was originally used to secure the purchase of client's principal residence, and the amount of original debt was less than basis of property?
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Nancyshoemake (talk|edits) said:
| 7 April 2008
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| my understanding is that this is non taxable since it is an abandonment/repossession - this would not flow back to this form
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