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Are there any offsets on a 1099-c regaring a beach house?

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Are there any offsets...

Are there any offsets on a 1099-c regaring a beach house?

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

Did a short sale ab

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The short sale had asked us for 20,000 plus will be sending us a 1099-c for 127, 000. Are there any offsets for the 2099-c

Submitted: 3 months ago.Category: Tax
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1/9/2018
Tax Professional: Tax.appeal.168, Tax Accountant replied 3 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,558
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Tax Professional: Tax.appeal.168, Tax Accountant replied 3 months ago

If you meet an exception or exclusion, the 1099-C income can be excluded from your income. SEE BELOW:

------------------------------------

EXCEPTIONS to Cancellation of Debt Income:

  1. Amounts canceled as gifts, bequests, devises, or inheritances
  2. Certain qualified student loans canceled under the loan provisions that the loans would be canceled if you work for a certain period of time in certain professions for a broad class of employers
  3. Certain other education loan repayment or loan forgiveness programs to help provide health services in certain areas.
  4. Amounts of canceled debt that would be deductible if you, as a cash basis taxpayer, paid it
  5. A qualified purchase price reduction given by the seller of property to the buyer
  6. Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program

Amounts that meet the requirements for any of the following exclusions aren't included in income, even though they're cancellation of debt income.

EXCLUSIONS from Gross Income:

  1. Debt canceled in a Title 11 bankruptcy case
  2. Debt canceled during insolvency
  3. Cancellation of qualified farm indebtedness
  4. Cancellation of qualified real property business indebtedness
  5. Cancellation of qualified principal residence indebtedness that is discharged subject to an arrangement that is entered into and evidenced in writing before January 1, 2017.

REFERENCE SOURCE:

https://www.irs.gov/taxtopics/tc431

--------------------------------------------------

If you meet any of the above exceptions/exclusions, you need to complete the Form 982 and attach it to your tax return for the year that you receive the 1099-C.

Link to Form 982:

https://www.irs.gov/pub/irs-pdf/f982.pdf

--------------------------------------------------------------

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