I need help - I have been to 3 cpas in the last month with three different answers - hoping you can match at least one of them:
Similar situations as above:
Husband had a rental property (actually 4 but lets just deal with this one for now) and that property was included in a bankruptcy discharged in 2009. He had no activity in the rental after the discharge. Property was forclosed in 2010 - not necessarily sold - just received the 1099a for 2010. Did not receive a 1099c.
Is this the solution: Claim loss on 4797 for 2010 return, wait until a 1099c is issued and then deal with the 1099c if and when it is issued? If it is issued, because of his Chapter 7 (Part of Title 11 bankruptcy) could he use form 982 Line 1a to offset the income for the cancellation of debt? I also have heard that if the 1099c is issued to amend the 2010 return form 4797 to adjust the basis?
What is a 1099c is never issued?
PLEASE HELP!