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

Asked about 1 year ago - 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)

  1. Alan D. Walton

    Pro

    Contributor Level 19

    2

    Lawyers agree

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    Answered . 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.

  2. Peter Joseph Lamont

    Pro

    Contributor Level 18

    Answered . 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... more

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