top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

1099-S Form on a short sale

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    1099-S Form on a short sale

    Hi all,

    We completed a short sale on our house in 2013. Both mortgages on the house were discharged in a Ch 7 back in 2008 (and not reaffirmed). Today I received a 1099-S from the law office who handled the closing, and the 1099-S is showing gross proceeds of $249,000, which was the selling price of the house. Do I need to do anything with this, given that it was discharged?

    Thanks!
    Filed Ch 7 - 07/10/08
    341 Meeting - 08/13/08
    DISCHARGED! - 10/15/08
    CLOSED - 10/20/08

    #2
    If this home was included and discharged in bankruptcy, you would still need to file the 1099-S and probably complete IRS FOrm 982 to show that the debt was discharged in a bankruptcy. Otherwise, I believe that the gross proceeds would be a taxable event. This is why you should have a tax professional prepare your taxes this year.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Thanks....I ran through the scenario in Turbo tax and it looks like that since the proceeds fall under the $250k\$500k (single\married filing joint) IRS limits, I won't owe any taxes on it but I still need to report the transaction on Schedule D, Capital gains\loss
      Filed Ch 7 - 07/10/08
      341 Meeting - 08/13/08
      DISCHARGED! - 10/15/08
      CLOSED - 10/20/08

      Comment


        #4
        No - doesn't go on Schedule D. Do the 982 form instead. Normally. it wouldn't be reported at all but since this was included in bankruptcy, fill out Form 982 accordingly. I was a CPA in my former life and Turbotax has a way of misleading people.

        Comment


          #5
          I've heard that Turbotax doesn't support Form 982, so maybe not a good idea to rely on Turbo. I wish I could remember where I read that, it might have been a thread here. I'll see if I can find it.

          Comment


            #6
            I would only use TurboTax if I entirely understood the interaction of a 1099-A/C/S behaved and what would need to be reported. As such, my personal opinion and next step, would be to use a professional tax service. You can still file electronically through most professional tax services. I just would not personally want to have unnecessary delays or any "assessments" pop up later -- even if those assessments were not applicable because the underlying debt was discharged in a bankruptcy.

            Of course it, how you do or have your taxes completed, is up to you.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment


              #7
              if you rec'd a 1099S, A C G which ever it may be good for you to use an accountant this year. S usually is a capital loss, which i find it odd you didn't get an A as opposed to an S. however, either way if you filed bk and listed the house as suggested just attach the 982 and you should be fine.
              8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

              Comment


                #8
                A 1099-S is not the same as a 1099-C. It does not require a 982. The OP is correct to be looking at whether there is a capital gain on the sale. I am not sure about the affect of a BK discharge on the basis. If Turbo Tax doesn't specifically address that, I would conult with a tax professional.
                LadyInTheRed is in the black!
                Filed Chap 13 April 2010. Discharged May 2015.
                $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                Comment


                  #9
                  If anyone needs to fill out a IRS form 1099s, I found a blank form here: [removed by moderator]
                  Last edited by justbroke; 05-18-2015, 02:28 PM. Reason: Removed URL which did not cleary show the download site. Additionally, no poster asked for a fillable 1099. Additionally, this thread is more than 1 year old.

                  Comment


                    #10
                    Elie please re-read the Forum rules and refrain from reviving old threads.
                    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                    Status: (Auto) Discharged and Closed! 5/10
                    Visit My BKForum Blog: justbroke's Blog

                    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                    Comment

                    bottom Ad Widget

                    Collapse
                    Working...
                    X