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Financial Planning / Tax Strategies
|Subject: 1099c||Date: 2/8/2013 8:38 AM|
|Author: gsgreen||Number: 117686 of 122924|
OK, a little complicated, but...................
First, there was a short sale on an investment (rental) condo in Novemeber of 2012.
The lender issued a 1099c showing that there was a forgiveness of $97,000.00.
The recourse box was, properly, checked yes.
After running the insolvency worksheet, the individual is about $75,000.00 insolvent, leaving $22,000.00 of forgiveness as potentially taxable.
Can this balance of $22,000.00 be discharged on (the same)Form 982 as a Discharge of Real Property Business Indebtedness?
In other words, claim both the insolvency and the Discharge of Real Property Business Indebtedness on the same 982? It does say to check "boxes(s)" - plural in the first section of the form.
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