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    kg613's Avatar
    kg613 Posts: 2, Reputation: 1
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    #1

    Feb 19, 2011, 12:37 PM
    Do co-borrowers on 1099c have to claim it on their taxes?
    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?
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Feb 19, 2011, 02:02 PM
    Whoever paid the interest gets to deduct it. Who's SSN is on the 1099C.
    kg613's Avatar
    kg613 Posts: 2, Reputation: 1
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    #3

    Feb 19, 2011, 02:13 PM
    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.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #4

    Feb 19, 2011, 02:50 PM
    Comment on kg613's post
    Check with a tax person. 1099c is usually used for debt forgiveness and is treated as income.
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