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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Got a 1099c mortgage loan I had in 2003. I could not

Customer Question

Got a 1099c for a mortgage loan I had in 2003. I could not pay because of divorce. Not a word from them until this year. Thirteen years! Can they do this?
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: This was a mobile home loan. I called and told them to come get it because I could not afford to pay the payments. They came & got it in 2003. Until this year I have not talked to them. 1099 C has Date of Identifiable Even 07/30/2015. Amt of debt discharged 25,446.04. Interest 1099.54. Debt description Mortgage Loan. Identifiable event code G.
JA: Anything else I can tell the Accountant before I connect you two?
Customer: no
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
My question is: Can I file a form 982 to reduce this? Is was my principal residence at the time they came and picked it up. If so, what do I enter on page 2 of form. Also, can a company do this after so many years have passed?
Expert:  Megan C replied 1 year ago.
Thank you for your question - yes, you can reduce this using form 982. You won't owe tax on this -- and this is fairly typical. What has happened is that they haven't issued it and are issuing it in order to be compliant with banking regulations. Nothing to be too worked up about - simply file form 982 indicating that this is primary residence debt and you will be fine. Please let me know if you need anything additional. If not, please rate postive.