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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.
Still little confused but getting better. On line 6 not sure what to put down. each partner has a net operating loss for the year of $18698; is this what goes on line 6?
Have a question. If possible, and if there is additional fee that is ok, but would you consider putting down the figures on form 982 line by line since I am still little confused. thanks
I am still having problems with the info you gave me. I cannot complete the 982 by your instructions and therefore I am stuck on whether or not I can actually eliminate the 1099-C income. I think what happened is your a tax professional in answering me in terms I do not understand. Could you help me out with the instructions you gave me regarding the lines on the 982 form. thanks.
I sent you a follow up and you never answered. Sorry now that I gave you the excellent rating; but I suppose the website is set up that way to make it look enticing. When I get time I will email the appropriate person(s) who run the website about the lack of any commitment and that once a person has paid the fee they are done. I will make sure to to use the website in the future.
Sorry about the email, but I am frustrated. I did some research on other sites and there seems to be a concensus that as long as the debt exceeded the FMV there would be an exclusion of the amount. the original figures I gave you were slightly off,but it still falls within the same problem. So as a partner my 1099-C is $58658.The short sale my portion was $47500. The actual amount of the debt owed the bank was $127500.00 just prior to short sale. My problem is where you started talking about what to put on what lines on the 982 form. We took no depreciation since this was a house that was being constructed over more than a year. I am just confused what to put on the lines on the 982 that will show the IRS the amount I am excluding.
I thought it would have been as simple as just putting down a few number and done. Guess I was wrong.
So if you could be more specific I would most appreciate it. The part about depreciation etc we took none since it was new construction.
And I apologize for the abrupt response. Thanks
** Please take a moment to rate my response as "Excellent" so that I may receive credit for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site. This answer is not financial or legal advice, and must not be used as such. For financial and legal advice, please contact a local professional.*
Okay, almost there . But when you mention being insolvent, does this me me personally or the partnership. I have a home etc. and I am not insolvent but the partnership could not pay the loan.
With your answer you confused me. Let me ask it this way.
What you are saying is that since I am solvent as a partner and I need to include it in my income. I am definitely not insolvent.
I won't bother you after you answer this!!
thanks again. Now you got me straightened out. I read all kinds of stuff on the web and it was 50/50 results. But one thing I keep reading was that cancelled debt for the partnership passes to the partners and I should have realized this when I got the 1099-C with my social security # on it. thanks again.
So whenever I might have another question do I just log on to the site and your info will always be there?
How would I put your name in the header. I do not have your name on any of the emails? I don't think?
Ok got ya
Just thought I would update you. We missed the boat entirely. My info to you was simply based on the 1099-C and the income and the fact that I was not insolvent. After further research with this complicated subject found out that since this income resulted from a short sale I had to calculate the loan and loss on worksheets which then resulted in the figures for a loss and bottom line results ended up with completely eliminating the 1099-C income and also ended up with a capital loss.
You did not miss the boat I did, since I did not give you all the information regarding the loan etc. It made sense that to work with the 1099-C you would need the loan information, any profit or loss from same, etc. I used some worksheets regarding short sales and yes it does get a little complicated, but following all the instructions and reading some other info it all became clear. I should have realized that I did not analyze where this 1099-C income came from and the only way to determine if any was taxable I needed the original information on the loan, the short sale etc.
Again, thanks for your help