Going Crazy Mad! CH7 and 2008 TAXES

[technoreid1]

CH7 Discharged 2008 NO ASSET (with home included)

I am in the middle of doing my taxes (YUCK!!!!!) and I am pulling my hair out!!!!!

I have received one 1099-A from my (former) lender and one 1099-C from a business credit card I used to have.

Would anyone know if what I have done sounds right?

I have reported both the 1099-A and 1099-C on my taxes + also FORM 982

On FORM 982 I selected/checked 1a (discharge of indebtedness in a title 11 case)

Then on Part 1, Line 2 on the 982 I have totalled up ALL my debt that was discharged in the BK7.

Do I answer Part 1, Line 3?

And also DO or SHOULD I have to do Part II (Reduction of tax attributes)????

Thanks, techno

[Lesa13]

I too have a 1099-A I am dealing with. I spoke to the IRS today and they told me a 1099-A that is the ONLY thing you have gotten on the property (ie, you didn't get a 1099-A AND a 1099-C from mortgage company) MUST be filed on Schedule D as a capital loss/gain.

A 1099-C is what goes on Form 982.

Now I spent a good hour on the phone with the IRS woman and she was basically reading to me from the instructions - not helpful as I have had two people attempt to help me FROM the instructions (one an attorney) and they could not make heads or tails out of it.

I think it's probably worth a phone call to the IRS in your case, esp if you are anticipating a refund. I called in the evening and got through to someone relatively quickly, at least.

[jeb]

I think it's probably worth a phone call to the IRS in your case, esp if you are anticipating a refund. I called in the evening and got through to someone relatively quickly, at least.

Or just leave both off and file taxes - 8-10 months from now when they catch it, you will have more time and they will be in the mood to help you. - jb

[Flamingo]

The IRS website (irs.gov) has an entire section on the 1099's and how they are handled. Be careful because when you have items such as this that get incorrectly or not included, it can be a flag for an audit. You may want to have your taxes professionally done for this year if you can swing it to have back up if you are still uncertain.