2 people on mortgage, one filed for bankruptcy who pays taxes on 1099c
My bankruptcy attorney had myself and my partner sign papers to show that the split on the ownership of the hous was 95/5. I own 95% I filed bankruptcy 2 years ago. I know that I don't pay taxes on the cancellation of debt and according to the bankruptcy attorney my partner should only pay 5% of the total cancellation of debt. However my accountant said that is not right and is making my partner pay 100% Why would I sign the papers for a 95/5 split that went to the short sale closing? The other issue is that Bank of America issues the same 1099c to both of us... it showed 100% of the cancellation of debt. Shouldn't they of split the 1099c 95/5?
Comment on Fr_Chuck's post
No.. he did not but I did. Yes he owes on the cancellation of debt... we know that but because it was a 95/5 split doesn't he only owe on 5% of the cancellation of debt. Not 100% and shouldn't the bank have issued a 1099c for me that had 95% of the cancellation oif debt abd a 1099c that had 5% for him?