Hi al
The creditor has send you the 1099C as he has forgiven your debt of 117,568. A debtor is required to fill up 1099C form when the creditor has forgiven a debt of $600 and above. This form needs to be filled up for the year of cancellation of the debt. After filling up the form, you are required to send the form to your creditor who will send it to the Internal Revenue Service. You may be required to pay tax for the amount of cancellation of the debt amount.
As far as I know, form 1099A is to be filled up to report your gain or loss from foreclosure of the property. Now, if you report loss from foreclosure or repossession, and the lender writes off or forgives the remaining debt, you need to fill up form 1099C also. You need not fill up both the forms for the same calendar year. If you completer boxes 5 and 7 of 1099C, you need not fill up form 1099a. However, if you fill up both the forms, you should not fill up the boxes 5 and 7 of form 1099C as per the instructions from IRS.
Hi al
The creditor has send you the 1099C as he has forgiven your debt of 117,568. A debtor is required to fill up 1099C form when the creditor has forgiven a debt of $600 and above. This form needs to be filled up for the year of cancellation of the debt. After filling up the form, you are required to send the form to your creditor who will send it to the Internal Revenue Service. You may be required to pay tax for the amount of cancellation of the debt amount.
As far as I know, form 1099A is to be filled up to report your gain or loss from foreclosure of the property. Now, if you report loss from foreclosure or repossession, and the lender writes off or forgives the remaining debt, you need to fill up form 1099C also. You need not fill up both the forms for the same calendar year. If you completer boxes 5 and 7 of 1099C, you need not fill up form 1099a. However, if you fill up both the forms, you should not fill up the boxes 5 and 7 of form 1099C as per the instructions from IRS.