Discussion:1099 A for Estate
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Discussion Forum Index --> Basic Tax Questions --> 1099 A for Estate
Discussion Forum Index --> Tax Questions --> 1099 A for Estate
Bushmaster (talk|edits) said: | 14 April 2008 |
| To keep this short as I know everyone is busy.
I have an estate I am giving pro bono advice for that has a weird twist (to me anyway). Decedent's estate doesn't have any money and received a 1099a from Freddie Mac. They forclosed and sold property at auction for ~$35,000 less than what was owed. What do I do with this? | |
Bushmaster (talk|edits) said: | 14 April 2008 |
| OK. I was waiting for the 1099 C - Cancellation of Debt to drop triggering income.
Estates are not my thing. | |
| 14 April 2008 | |
| It is important to note that a debt of the estate is not the same as the amount decedent owed. In the case you describe, a 1099C may well be issued under decedent's social security number however it would be unlikely to result in estate income even were the estate solvent. This is a sale, however, and income tax consequence depends on whether foreclosure proceedings commenced before or after death. | |
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