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3 very specific questions about 1099 c, insolvency, and form 982 please


slavenomore
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3 very specific questions about 1099 c, insolvency, and form 982 please 

Sorry, this may be a little jumbled,  I have been in the hospital…..and I am writing this from there.

 

Questions

 

1)  If you have 3 separate 1099-cs  all from the same OC

all on a dif date but just (1 day apart from each other ex may 1,2,3rd ) and from the same OC.

 

What is the date that you use to show your insolvency?    

as the date immediatly prior to discharge.  The day before the first 1099c?  Which is May 1st?  i.e.?  April 29th? 

 

 

2) I paid the sales tax in full  with my state extension. 

 does the Federal 1099 cs, and the 982 that is all Fed 

affect the state tax if at all?   is there anything I have to send them?

 

3) On form 982 and 1040, do I fill int total liabilties?   or total of only the 1099 cs ?  

 

ASSETS

 

4) How do i determine the Value in the assets liabilities worksheet of old stuff? 

 

A) 200 books but they are highlighted so they cant be sold?  so what are they worthless?

 

B) Old equip 5-10 years old  computer. 

 

c) Furnishing   -   old tvs, old microwaves, couch, coffee table, table    all at least  5-10 years old. 

 

 

 

Thank you so much,  I really appreciate this. it was all i could do to just write the questions. 

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As far as the state is concerned...maybe. Your best bet is to call and ask. You might owe them taxes.

Some states accept the insolvency ploy...some don't. Some states compare your federal returns to the numbers on your state returns.

I got hit with a state audit that claimed I had a federal refund on which I didn't pay state taxes.

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 CLARIFICATION QUESTIONS ABOU YOUR REPLYS PLEASE>
 
1. Day before first 1099c.
 
Is this how I determine the figures correctly?

or is it.

 To exclude the forgiven debt from gross income, you must have been insolvent at the time EACH debt was forgiven? So, you must first show you are insolvent on the date of identifiable event shown on the 1099c with the earliest date. Then, go to the next 1099c and show that you were insolvent on that date, without including the first discharged debt as a liability because you no longer owed the first debt at the time the second debt was forgiven. Then, move on to the 3rd one. ???

 

 

2. Sales tax? Not sur what you're asking...

 

Just if the fed affects the state even though i paid in full to state with extension. 

3. Form 982...ALL liabilities.

 

All liabilities before 1099cs   or just the total of 1099c  liabilities? 

4. "Garage sale" values.

 

Makes sense, any online valuation site like salvation army, good will or other that will make this easier? 

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I did have one other question please.  

 

How in Gods sake do you determine the value of your Assets and liabilities of the Date Prior to the 1099s?  I mean   How do you go back in time and see the exact liabilities and Assets?   What do tools, statements or documents,  do you use to determine or prove this?  and how do you get them from that far back? 

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1. Since all 1099c were from the same creditor and they are dated one day after another, I would choose the earliest one and use that to cover all three. The quote you reference implies multiple 1099c months or even years apart...in which case you would need a separate 982 for each.

2. As far as the state is concerned, call and ask. It varies.

3. ALL liabilities means everything you owe money on...house, car, child support, whatever.

4. Nothing comes to mind. Maybe Kelly's blue book for a car...comps in the area for a house. Otherwise, "what would I charge for this?"

And...no...its not simple. The IRS wants your money. Take your best shot at it and keep your work sheets in case you get audited.

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If these 1099's are all from the same OC/JDB regarding the exact same debt, you need to inform the IRS that they are trying to stack the debt on you and they can't do that! One debt, one 1099, period. Sounds like, if I am reading this correct, they are trying do really do you in. Am I right? Or, did I mis-undersatnd the comment!

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CLARIFICATION;  These are the exact figures.  60K cc and other liabilities. 30K in CC 1099c -  all from OC. 10K in assets. 

 

May 1st 1099c = 9K,  May 2nd 1099c = 13K, May 3rd - 8K, /  liabilities on 4/29 including all CC = 60K.  10K assets. 

 

do I have to do 3 different insolvency sheets?  I just can't quite wrap my head around how to do this right. 

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