DonqIII

Yet another 1099C question

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I have to be the most uncomprehending person around cause I still do not get this from the insolvency end... but no fear, I will try to hire an accountant if need be.

 

Anyway...

 

I know that proving insolvency is the value of everything you own immediately before the date on the 1099C.

 

I know that proving insolvency is the sum total of all "debts" including the amount in the 1099C.

 

Let us assume that you have 15 accounts that were defaulted on. Some were bought by JDBs

and some are still with the original creditors.

 

Let us also assume that only a certain number issue the 1099Cs.

 

Correct me if I am wrong but it would be the total of all accounts that are defaulted on because that is money that is still owed, even though I am past sol.

 

Here are my questions....

 

#1 . The amount owed on each account would be based on what?

 

The Original Creditor amount defaulted on? (Balance due)

 

or The JDB amount that they claim you owe, if an account was sold?

 

#2. Can the amount owed be taken from a credit report that was obtained 6 months after defaulting

many years ago? Or as soon as a JDB shpowed up on one?

 

Not all accounts are currently shpowing as some were deleted under credit clean up.

 

#3. Finally... Lets assume that more 1099Cs get issued next year... Can the amount on the

ones issued this year... if there are any... be included in the debt column ...?

 

I only ask because some have said they can still be collected on even after a 1099C has

been issued therefore they still would be your debt... ( And needed to keep one in the insolvency stage)

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Don't speak irs-ese?  You're not alone.

 

Its my understanding that you need to show insolvency on the date of default...not the date the 1099c is issued.  If that is true, then once you've filed the forms for that date, ALL debts are covered.

 

What amounts?  Good question.  You probably do want to get an accountant involved.

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Don't speak irs-ese?  You're not alone.

 

Its my understanding that you need to show insolvency on the date of default...not the date the 1099c is issued.  If that is true, then once you've filed the forms for that date, ALL debts are covered.

 

What amounts?  Good question.  You probably do want to get an accountant involved.

Well, which amounts I will let the CPA figure, however if you are correct then it would be all OC and I would imagine what they would claim is balance due....

 

But I am pretty certain that it is based on the year the 1099C is issued based on the date they forgive/cancel any debt....

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My tax gal said it was for the year that you were insolvent, or defaulted in, which it should be the same. That is the way she filed mine and she researched it quite a bit.

Well, my defaults were in 2008, or 1st quarter of 2009.

 

How in the world would you come up with a list of assets going back 5 to 6 years?

 

There are things , that would have been part of my inventory back then, that are worn out

and thrown out from then that I have no record of...

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DongIII:

 

 

My default was also 2008. You just need to sit down and come up with wwhat your income was at that time and how much in debt you were at that time. shouldn't be that hard. 

The very first link from Beeches and Beer above (BTW thanks B&B)

 

http://blog.credit.c...s-with-1099-cs/

 

has this statement in it...

 

"We’ve received several 1099-Cs for settled debt in 2012 and plan on filing Form 982 for insolvency. The question I have is: All of the settled debts happened on different dates throughout the year so how do we file only one Form 982? The instructions say that you must fill out your assets and liabilities immediately before the debt was settled, but how is this done with different settlement dates? All of the tax programs I’ve looked at only support a single Form 982."

 

The instructions in 4681 for form 982 specify assets and liabilities....  But again... I know nothing, other then I am doing an inventory just in case.

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The very first link from Beeches and Beer above (BTW thanks B& B)

 

http://blog.credit.c...s-with-1099-cs/

 

has this statement in it...

 

"We’ve received several 1099-Cs for settled debt in 2012 and plan on filing Form 982 for insolvency. The question I have is: All of the settled debts happened on different dates throughout the year so how do we file only one Form 982? The instructions say that you must fill out your assets and liabilities immediately before the debt was settled, but how is this done with different settlement dates? All of the tax programs I’ve looked at only support a single Form 982."

 

The instructions in 4681 for form 982 specify assets and liabilities....  But again... I know nothing, other then I am doing an inventory just in case.

 

It is my understanding that you fill out a form 982 for each date a debt was settled in that year. So on the 2nd date your 982 would be calculated minus the adjusted liabilities you settled on the first date and so on to make sure you were insolvent each time. 

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