1099C's what do they mean and will you GET ONE????
i do understand there has been much concern about 1099c's....those that work in law firms have seen them issued...accountants have seem them issued...but what do they mean to US...here ...those that are going through or have been through bankruptcy???
personally, we all have sources of information that we feel we can trust or not....for me it's our accountant, whom, i believe it right on top of today's problems and situations dealing with bankruptcy as well as a number of financial problems many are faced with today.
i had to call our accountant today for information with early prep for our 2010 taxes. i wanted a break down and full understanding of HIS interruptions and experiences with 1099c's....when he has seen them...what do you do when you get one..and who exactly are they issued to??
his response was interesting....first, he stated the MOST he has encountered...(and remember this is ONLY ONE accountant in thousands)....were issued by CREDIT CARD COMPANIES.....on loses due to unpaid credit card interests and balances.
he said, he has seen them from chase, b of a....citi...etc. some for some amounts very small.... others for thousands....however, not one client had to pay tax or have any tax ramifications if they had a discharged bk...??? also, some clients had not filed bk, but were just not paying their credit cards.... again...interesting...
he also dispelled a terrible misnomer dealing with foreclosures... or at least it was for me...i was under the impression that a 1099c could be issued for a deficiency from states that allow collections on the deficient amounts between the sale of a house and the mortgage balance owed the bank. didn't YOU??? actually or usually the type of 1099 used for mortgage deficiencies is more likely the 1099a, not the 1099c.
well, apparently, the laws changed in 2007 and all foreclosure deficiency are tax exempt on primary residences...he said they can in fact issue them, however, and he said he can't for the moment think of the line item number, however, there is actually a line item number on the tax 1040 for such an explanation if, (as well as the attached 982) in fact, one does receive a 1099a for this reason...interesting...
again...anyone can dispute this information source....or say they know someone who rec'd a 1099c....the real question here is, show us someone that actually had to pay an additional tax against a 1099c....
of course if one does receive one, you do and one must provide an explanation of the amount.
i do understand there has been much concern about 1099c's....those that work in law firms have seen them issued...accountants have seem them issued...but what do they mean to US...here ...those that are going through or have been through bankruptcy???
personally, we all have sources of information that we feel we can trust or not....for me it's our accountant, whom, i believe it right on top of today's problems and situations dealing with bankruptcy as well as a number of financial problems many are faced with today.
i had to call our accountant today for information with early prep for our 2010 taxes. i wanted a break down and full understanding of HIS interruptions and experiences with 1099c's....when he has seen them...what do you do when you get one..and who exactly are they issued to??
his response was interesting....first, he stated the MOST he has encountered...(and remember this is ONLY ONE accountant in thousands)....were issued by CREDIT CARD COMPANIES.....on loses due to unpaid credit card interests and balances.
he said, he has seen them from chase, b of a....citi...etc. some for some amounts very small.... others for thousands....however, not one client had to pay tax or have any tax ramifications if they had a discharged bk...??? also, some clients had not filed bk, but were just not paying their credit cards.... again...interesting...
he also dispelled a terrible misnomer dealing with foreclosures... or at least it was for me...i was under the impression that a 1099c could be issued for a deficiency from states that allow collections on the deficient amounts between the sale of a house and the mortgage balance owed the bank. didn't YOU??? actually or usually the type of 1099 used for mortgage deficiencies is more likely the 1099a, not the 1099c.
well, apparently, the laws changed in 2007 and all foreclosure deficiency are tax exempt on primary residences...he said they can in fact issue them, however, and he said he can't for the moment think of the line item number, however, there is actually a line item number on the tax 1040 for such an explanation if, (as well as the attached 982) in fact, one does receive a 1099a for this reason...interesting...
again...anyone can dispute this information source....or say they know someone who rec'd a 1099c....the real question here is, show us someone that actually had to pay an additional tax against a 1099c....
of course if one does receive one, you do and one must provide an explanation of the amount.
my personal accountant has recalled a few occasions where the C's were issued on the deficiencies.
but then again i have seen 1099S be issued incorrectly by companies as well. (usually for capital losses).