Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I received a 1099-C (Cancellation of Debt) for a decedent…

Customer Question
I received a 1099-C...

I received a 1099-C (Cancellation of Debt) for a decedent with the decedents SSN. Would I (should I) report this on the 1041 estate return?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Mother-in-law passed 2/05/2015. estate created 5/6/2015. received 1099-C in 2016 for the amount of $8000

Accountant's Assistant: Is there anything else the Accountant should be aware of?

1099-C issued against decedent's SSN which is different from estate EIN. The estate appears to only have interest income of about $900.

Submitted: 10 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 35 minutes by:
4/8/2017
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,829
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
I'mCustomer I'll assist.
Ask Your Own Tax Question
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
Since the discharge was in 2016, report it on 1041. Let me check something, and I'll be right back.
Ask Your Own Tax Question
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
COD income created after the date of decedent's death may not be taxable to the estate. Unless the estate succeeded to the debt relief, you may not have to pay tax on this at all.Circumstances will dictate.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer
Ask Your Own Tax Question
Customer reply replied 10 months ago
What do you mean by "Unless the estate succeeded to the debt relief..."?
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
If it was a debt of the estate that did not have to be paid, it's income to the estate.
Ask Your Own Tax Question
Customer reply replied 10 months ago
I guess I am getting hung up on the what is considered debt to the estate. This was my mother-in-law's debt which existed prior to the creation of the estate. Would that then be considered cancelled "debt of the estate"?
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
Then it is not taxable. I would argue it would be taxable to her if she was alive, but not the estate.1099c are issued in error a lot. Since this was issued a year late, and issued to her ssn, do nothing.
Customer
Ask Your Own Tax Question
Customer reply replied 10 months ago
Thanks.
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 10 months ago
You're welcome. Please take one more moment for positive feedback. Experts are only paid after feedback completes your request.
Ask Your Own Tax Question
Was this answer helpful?
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,829
4,829 Satisfied Customers
Experience: 35 years tax experience, including four years at a Big 4 firm.

PDtax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My Pa income tax return is under standard review what does
Hi my Pa income tax return is under standard review what does that mean ? And also does the affect my federal income tax return … read more
Carter McBride
Carter McBride
LLM
486 satisfied customers
I was mailed an cancellation of debt form from a debtor that
I was mailed an cancellation of debt form from a debtor that repossesd a car I had 4 hears ago, and the cancellation of debt was for 17,000. I bought the car in 2011. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,366 satisfied customers
My S Corp cancelled the debt of a loan we had made to
My S Corp cancelled the debt of a loan we had made to another company to start up their business. Do I file form 1099-c. Where do I deduct the amount I cancelled on our 1120S… read more
abci168
abci168
Principal
27 satisfied customers
How do I figure out depreciation for my income tax return? A
How do I figure out depreciation for my income tax return? A friend recently died owning tillable and productive farmland with no buildings. The farmland was appraised by a licensed appraiser. He did … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
742 satisfied customers
My wife and I just received a "CANCELLATION OF DEBT" notice
My wife and I just received a "CANCELLATION OF DEBT" notice from Regions bank. I took out a new mtg. on my home and paid off Regions bank. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
New tax law —— I know that the law says: no to the
New tax law —— I know that the law says : no to the deductibility of Home Equity Loans. My question - if the funds are used exclusively or rental property and they can be traced or identified - any su… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Interested in information about new tax laws and their
Interested in information about new tax laws and their effect on S Corporations … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Not sure if this is considered tax law or employment law,
Not sure if this is considered tax law or employment law, but...I worked overseas and would file my own taxes and get foreign tax credits. 2 years ago, company changed policy and said they would pay t… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,366 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,366 satisfied customers
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Form 1099-C (2016) Cancellation of Debt Box 7 Fair market
Form 1099-C (2016) Cancellation of Debt Box 7 Fair market value (FMV) of property shows zero. Why zero? The FMV is the most frequent figure on Form 1099-C. The amount in Box 2 is 111,xxx. Box 1 Date o… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Lane I am using tax software for 1099c cancellation of debt
For Lane: Lane I am using tax software for 1099c cancellation of debt and the box that asks for "debt cancelled while insolvent" it has to be equal or less than the cancellation amount? I thought you … read more
Chad Schoch
Chad Schoch
Bacehlors of Business Administration
20 satisfied customers
I am receiving a 1099c form (cancellation of debt) and I
I am receiving a 1099c form (cancellation of debt) and I wanted to know if social security counts that cancelled income towards wages earned? I am only aloud to make about $1000 roughly a month workin… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,284 satisfied customers
I am getting a 1099c form (cancellation of debt) and I am on
I am getting a 1099c form (cancellation of debt) and I am on Social Security Disability SSDI. Does this mean my social security SSDI becomes taxable? I will have to pay taxes on the 1099c but I am thi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Income tax question. Are there any ways that interest on an
income tax question. Are there any ways that interest on an insurance policy can be tax deductible? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
TO TAKE THE CANCELLATION OF DEBT INCOME OFF OF THE TAXABLE
I AM TRYING TO TAKE THE CANCELLATION OF DEBT INCOME OFF OF THE TAXABLE INCOME AND HAVE ANSWERED ALL OF THE QUESTIONS CORRECTLY. THE WORKSHEET SHOWS THAT NONE IS TAXCABLE BUT THE AMOUNT CONTINUES TO SH… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,115 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x