Received 1099-C need help with form 982

[imran93]

Dear Members

I have received 1099-C from some business credit cards that were discharged in my Chapter 7 that I was personally liable for. The box was bankruptcy is checked and 1099-Cs are dated one day after my discharge date.

I have read that since I have received 1099-C I have to file IRS form 982.

Please advise how to fill up Part II of IRS form 982

[2manybills]

I got one for BofA on my husband's business credit card. My tax man said it was not a big deal and he filled out the form and checked a box that said that the debt was "discharged in bankruptcy".

[tobee43]

it's not a big deal really...i know it seems scary, but it's not. what questions do you have?

personally, i would hire an accountant to fill out the 982, that way, there usually is no question. if you filed bk...you are covered...really.

[2manybills]

I agree tobee43! I was so annoyed when we got ours because they technically did for tax year 2010 and our debt was discharged in 2009. But my tax man said it was a nothing and not to worry about it. I guess I was more annoyed by the fact that it was BofA, one of the main reasons why we filed in the first place.

[tobee43]

I agree tobee43! I was so annoyed when we got ours because they technically did for tax year 2010 and our debt was discharged in 2009. But my tax man said it was a nothing and not to worry about it. I guess I was more annoyed by the fact that it was BofA, one of the main reasons why we filed in the first place.

i hear you, however, we both know how scary, even understanding the undertones, it is to receive one.

they can come years after one files and are closed on or for a bk. so people should be prepared to maybe receive one in the future.

[2manybills]

i hear you, however, we both know how scary, even understanding the undertones, it is to receive one.

they can come years after one files and are closed on or for a bk. so people should be prepared to maybe receive one in the future.

For sure, I freaked out and I'm in this field. Thank God for this forum. That's where I figured it out that it was not a big deal.

[imran93]

Thanks everyone for replying to thread but my question is not really answered. I know it is not a big deal and I have to fill up Form 982. One accountant I talked with did not have any idea of 982, the other one is asking lot of money to fill up the return

So I will resubmit my questions for someone who has already filled form 982

1. Please advise in Part I did you put the amount of Total Discharge or just the amount from 1099-C you received.
2. Did you fill up anything in Part II of Form 982

Thanks

[debee]

Thanks everyone for replying to thread but my question is not really answered. I know it is not a big deal and I have to fill up Form 982. One accountant I talked with did not have any idea of 982, the other one is asking lot of money to fill up the return

So I will resubmit my questions for someone who has already filled form 982

1. Please advise in Part I did you put the amount of Total Discharge or just the amount from 1099-C you received.
2. Did you fill up anything in Part II of Form 982

Thanks

Check box 1a, Box 2 is the amount from your 1099.

Can't advise on any aspect of the business debt and any complicating factors associated with that.

[tobee43]

Thanks everyone for replying to thread but my question is not really answered. I know it is not a big deal and I have to fill up Form 982. One accountant I talked with did not have any idea of 982, the other one is asking lot of money to fill up the return

So I will resubmit my questions for someone who has already filled form 982

1. Please advise in Part I did you put the amount of Total Discharge or just the amount from 1099-C you received.
2. Did you fill up anything in Part II of Form 982

Thanks

sorry...ok here's some instructions for you, however, i would still use a professional...and wow...i find that unreal that an accountant didn't know what a 982 was!! remember your purpose is also to prove you were insolvent and thereby covered by the "Act".

so the question is really...how should I report the information and items needed to prove insolvency?

"Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation."


hope this helps a bit, i have not gotten one, however i have filled them out before:


To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982.

i do have to mention that this was done for a person that rec'd one, and i had it right in front of me, and i could see it..and because and this is why i think you need to see some one...i did one with someone with a chapter 11, in which case...

you would check 1a (if you filed chap.11) or 1b (if you received a 1099-A or 1099-C). Line 2, total amount of discharged indebtedness excluded from gross income (1099-A, 1099-C). leave the rest of the form blank. we then wrote a brief statement showing total assets and liability.

[tobee43]

For sure, I freaked out and I'm in this field. Thank God for this forum. That's where I figured it out that it was not a big deal.

i know, i mean i worked on all types of law researching, tax, criminial, civil, estate, consitutional law...etc. even went to court with the "big" cases but bk was way out there for me. although i had i paid my dues at bu learning the basics ofbk and family law were really my least favorite types law. and, i didnt run into those two areas much in my career! this forum is a wealth of knowledge..

[imran93]

Another Question

Thanks for the reply.

I think I have to hire some help. Just two more questions

Did you mean I do not need to fill up anything in Part Ii, since my debt was discharged in Chapter 7

A new question I have it, would I get back in tax refund that is due afterwards?

[2manybills]

Thanks for the reply.

I think I have to hire some help. Just two more questions

Did you mean I do not need to fill up anything in Part Ii, since my debt was discharged in Chapter 7

A new question I have it, would I get back in tax refund that is due afterwards?

Yes, mine wasn't filled in since your debt was discharged. Also, we got our tax refund this year. Did not effect anything on that.

[imran93]

So you did not fill up anything in Part Ii

Did you got your refund quickly or return was manually processed

[2manybills]

I always manually process my tax returns. We got ours within 4 weeks of filing, also from the State. I will look at ours again and confirm exactly how it was filled out.

[2manybills]

On my 982 form, my tax guy checked in Part I box 1(a) discharge of indebtedness and box 2, the amount of the debt that was discharged (only that debt that we received the 1099C for).

Part II and Part III, nothing.