Hi,

Back in 2005 I brought a house but the bank wouldn't appove the loan without a co-borrower so I added my mom. In 2009 I had to leave the house due to getting accepted into medical school and at the time I was unemployed. I kept the mortgage payments up until about midway through 2010. I asked for a deed in lieu of foreclosure and the bank granted that request and I voluntarily returned the deed to the mortgage company. Well I already filed my taxes for this year and was issued a refund then my mom calls and informs me the mortgage company sent me a statement. They issued a 1099-C with both of our names on it. My question is does my mother also have to claim this on her taxes as well or can I just claim it since she never lived in the residence or contributed to the mortgage. She has her own home which is her primary residence. Also would I qualify for insolvency since I have no assets and a lot of debt including student loans?

Whoever paid the interest gets to deduct it. Who's SSN is on the 1099C.

Wow I didn't even see they had a ssn on the form. It looks like my moms ssn is on the 1099-C. However she never paid for anything in regards to the house. I paid all the taxes, interest,mortgage payments, HOA fees etc.

Check with a tax person. 1099c is usually used for debt forgiveness and is treated as income.