Announcement

Collapse
No announcement yet.

1099-C after discharge

Collapse

Unconfigured Ad Widget

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

    1099-C after discharge

    Our Ch 7 discharge was in October 2018. Of the 7 credit card creditors, three did not file claims. These 3 credit cards have sent 1099-C notices. The others, who filed claims did not send 1099c. Needing advice on what to do about these 1099c's. Thank you.


    #2
    Talk to your tax preparer. Your tax preparer (or you) can file Form 982, with your tax return, to add a tax attribute that those debts were discharged in an action under Title 11 (Bankruptcy). That Form 982, and checking the box for Title 11, will mean that you do not have to pay taxes on the taxable gain. (The IRS considers it a taxable gain when a creditor forgives debt.)

    Instructions for Form 982: https://www.irs.gov/pub/irs-pdf/i982.pdf
    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


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thank you, Justbroke. We have an excellent tax preparer, so now we can rest easy until time to file.

      Comment

      Unconfigured Ad Widget

      Collapse
      Working...
      X