Skip to main content

How can I file insolvancy with 1040 after 1099c for unsecured debt $35,000 in CA?

Cypress, CA |

We foreclosed homes in 2010. We filed tax return after 1099a for these homes in 2011. I have no income but my husband's gross income a year is $120,000. We have no other assets. Still other credit cards ( in separate name ) are in collection company. All debts occurred during marriage. When homes foreclosed and credit cards' account sold to collection company in 2010, both of us had no job.

Attorney Answers 2

Posted

You use for 982 for the year of the forgiven debt. You may need a tax attorney to assist you in preparing the form, as you need to analyze whether you were insolvent, and to what extent, as well as adjusting your basis on the properties to determine whether there were capital gains or recovered depreciation, which could still be taxable.

Mark as helpful

2 lawyers agree

Posted

I would need more information before I could provide you with a proper response. However, I agree with the responses from my colleague.

If you found this Answer helpful, please mark it as "Best Answer". Your feedback is greatly appreciated. Peter J. Lamont, Esq. Law Offices of Peter J. Lamont 623 Lafayette Avenue, Suite 2, Hawthorne, NJ 07506 Phone: (973) 949-3770 Fax: (866) 603-0471 Toll Free: (855) NJLAW01 (855) 655-2901 www.peterlamontesq.com Additional Offices in New York, Monument, CO, San Juan, PR and affiliates throughout the country. PLEASE NOTE: The above statements are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained on this site without first seeking the advice of an attorney.

Mark as helpful

1 found this helpful