Discussion Archives:Debt Cancellation for a Decedent

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Discussion Forum Index --> Advanced Tax Questions --> Debt Cancellation for a Decedent


Discussion Forum Index --> Tax Questions --> Debt Cancellation for a Decedent

TBS1234 (talk|edits) said:

7 February 2012
We have a married couple. Wife dies with $140,000 of student loan debt. She gets a 1099C in her name alone for the full amount.

Surviving spouse is not a co-signer to the debt. Estate of decedent is down to equity in the house-not alot. Decedent spouse may be actually insolvent given the low equity in the house and her student loan debt. That is not yet determined. How would you file this? Debt cancellation income to the Estate and show the Estate is insolvent and file a 982? Probably not file jointly in any event? Any thoughts on if the IRS could collect from the surviving spouse if the decedent was not insolvent. Any other ideas?

Trillium (talk|edits) said:

7 February 2012
While you're waiting for responses, review the discussions that come up if you search "1099-C" decedent and "1099-C" deceased. As mentioned on the CC debt cancellation question that was posted just minutes before yours, Discussion:1099-C_issued_to_decedent has some good info, too.
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