What To Do With a 1099-C Received After Bankruptcy?

You filed bankruptcy last year, maybe two years ago, and you received a 1099-C. That form is a tax reporting document letting the IRS know that you had debt forgiven. In this video, I discuss what to do when you receive that 1099-C.

The for you need for your taxes is IRS Form 982

Matt Berkus is a Colorado licensed bankruptcy and debt relief attorney with 18 years of experience. I offer free phone consultations to residents of Colorado for the purpose of bankruptcy. Click on my websites for additional information and for the phone number to call and schedule.

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[Albert-]

What are the chances of getting a 1099C form after a chapter 7 bankruptcy? is it unlikely to happen or is it going to happen?Also is a 1099c form from every creditor?

[MrReham]

Wrong with respect to bankruptcy and foreclosure. The 1099 C represents income from cancellation of debt taken by the creditor as ordinary expense i.e. payroll . You cannot get a tax break on the write down of a bad asset charged off in a BK and then get the proceeds from sale in a foreclosure. Furthermore you cannot foreclose as a trust and related SPV converting the amount written down as tax credit and amount charged in a bankruptcy, enforce the lien at sale and credit back the charge as ordinary on a 1099 C issued to the party in possession of real property i.e. treated as rents. If not enough then capitalize the rents at 10 times multiple in a Special Purpose Vehicle. Monumental tax loophole that not a single CPA has picked up to date .

[laz]

On Turbo Tax you do have to input the 1099-c. Once it is in the system will ask on the 1099-c were your debt discharged in a bankruptcy procedure. Then by applying yes it will automatically subtract the amount of the 1099-c and create a form 982 and forward the correct information into form 982. no need to fill out anything. now you can transmit electronically because the form 982 is attached.

[hyun.m]

I already filed taxreturn (eitc) .and week later recieved 1099c form. I discharged ch7 Oct. What can I do? I am so worry😥.

[bassstudentlife]

What's the " indentifying number"? Would that be the SS#?