Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Divorce (https://www.askmehelpdesk.com/forumdisplay.php?f=98)
-   -   Cancellation of debt in a divorce (https://www.askmehelpdesk.com/showthread.php?t=719678)

  • Nov 28, 2012, 02:28 PM
    FDimattia07
    Cancellation of debt in a divorce
    1st Question: Taxpayer and spouse owned a primary residence. Refinaced the mortgage and used proceeds for personal use. Received 1099-C for $ 200,000 after the short sale. The exclusion for the Principal residence does not apply because the money forgiven were for personal use , they ought to try the Insolvency exclusion. Filing jointly is not the case since are in the middle of the divorce. Filing separetly how they split the cancellation of debt of $ 200,000 since title and mortgage of the house is in both names and how the IRS will trace the total amount to separeted amount. Also, filing jointly is ruled out because married couple don't want combine their total asset and liability for insolvency worksheet. Couple lives in equitable distribution state.

    2nd Question : Couple lives in FL. One spouse received 1099-C for $150,000since the property lot is in her name. Taxpayer is solvent and spouse insolvent according to insolvency worksheet. Can they filing jointly even though the cancellation of debt is for one spose only or they have to combine both asset and liability for the insolvency worksheet
  • Nov 28, 2012, 07:11 PM
    Fr_Chuck
    We are glad to help you with your homework, we will discuss your answer. So tell us what you think and we will discuss it with you.

    ** we do not do your homework for you

  • All times are GMT -7. The time now is 03:49 AM.