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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hello, Where does cancellation of debt (1099-c) get reported

Resolved Question:

Hello,

Where does cancellation of debt (1099-c) get reported on 1040 for a rental property? Schedule E or C?
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

The answer to your question is, neither - the income from 1099-C goes on the "other income" line of your 1040. It does not go to schedule E or schedule C

Megan C :

You can read about that HERE on the IRS 1099-C form, where it gives "Instructions for Debtor"

Megan C :

If you are insolvent, or filed for bankruptcy, then you may have an exclusion from income.

Megan C :

CLICK HERE to look at the aforementioned 1099-C form

Megan C :

Is there anything else that I can assist you with today?

Customer:

Thank you.So if I'm using Turbo Tax Premier, I just enter this on the "other income" line of the form? Doesn't it need to be explained or otherwise tied to the 1099-s?

Customer:

Sorry, 1099-C

Megan C :

No, it would just go on "other income" - the IRS will look there to make sure it's reported

Customer:

Ok, unfortunately TT's interview portion isn't helpful, so I'll have to just go to the form and hard-enter it. Thanks!

Megan C :

You're welcome

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 2 other Finance Specialists are ready to help you
Expert:  Megan C replied 2 years ago.
Thanks, Susan for your positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.