Form 1099-A. I don't see a box to mark bankruptcy (like there is for Form 1099-C)

Forum|Forum|2 years ago
September 4, 2023
2 replies
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Client received Form 1099-A. I don't see a box in the worksheet to mark bankruptcy (as there is one Form 1099-C). How do I mark that? This prevents the information from flowing to Form 982. I've checked this board and while i found a couple of discussions about the bankruptcy, they all mentioned the link on Form 1099-C. Nothing about Form 1099-A. Thanks in advance for any help.

ProSeries Professional

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Best answer by Terry53029

2nd home

Based on your numbers, your client does not have canceled debt (mortgage 384893 FMV 510000) You just fill out the worksheet, and no 982 required. It is as if your client sold his home to the bank for a loss. When the bank does sell the property if less than 384893 then he will receive a 1099c. When you get to part 3 of the worksheet consider it a short sale. It works if you fill out the entire worksheet correctly

T

Terry53029

Intuit Community Champion

Usually the lender will file only the 1099C or they will file both A and C. When you fill out the 1099A only you also have to fill out the "Cancelled Debt Worksheet", and link your 1099A to that worksheet. on the worksheet there is a box to check you never received a 1099C.