Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   1099-C help (https://www.askmehelpdesk.com/showthread.php?t=184616)

  • Feb 16, 2008, 08:41 AM
    HogFan
    1099-C help
    My friend received a 1099-C, I've downloaded IRS Form 982. She would have otherwise been able to file a 1040EZ form. Now as I understand she has to file a 1040 and a Form 982?

    Credit card write-off of apx 11K. Note this is an individual 1040 return.

    My question pertains to the insolvency determination. Anyone who can tell me in figuring an individual's net worth (or net liablity) how to address the following:

    What exactly are or are not ASSETS: I know real property, cash, securites, cars etc. are. If you have to factor in household furnishings, tv's and pc's and dishes etc included?

    How to treat a CAR when you owe the bank on it? Is it a liability for the remaining amount of the note AND an asset for it's FMV?

    Appreciate any response here.
  • Feb 29, 2008, 02:00 PM
    AtlantaTaxExpert
    Hold on! Form 982 is for foreclosed properties that are your primary home, NOT credit card forgiveness.

    Your friend needs to get professional tax help on this, because proof of the insolvency has to be attached to the tax return in the form of a balance sheet showing her debts versus her assets and resulting in a NEGATIVE balance.

    ALL of the person's belongings MUST be considered.
  • Mar 4, 2008, 06:05 PM
    HogFan
    Quote:
    Originally Posted by HogFan
    My friend received a 1099-C, I've downloaded IRS Form 982. She would have otherwise been able to file a 1040EZ form. Now as i understand she has to file a 1040 and a Form 982?

    Credit card write-off of apx 11K. Note this is an individual 1040 return.

    My question pertains to the insolvency determination. Anyone who can tell me in figuring an individual's net worth (or net liablity) how to address the following:

    What exactly are or are not ASSETS: I know real property, cash, securites, cars etc., are. If you have to factor in household furnishings, tv's and pc's and dishes etc included?

    How to treat a CAR when you owe the bank on it? Is it a liability for the remaining amount of the note AND an asset for it's FMV?

    appreciate any response here.
    Yeah, we haven't done anything yet. However, I looked up the Form 982 and I found several examples where people have been directed to show their credit/loans on that form when they have been discharged (credit card debt included).

    If you know of an EA in the Fayetteville, AR area, please respond. Thanks for responding initially.

    • All times are GMT -7. The time now is 02:28 AM.