JACKSORH Posted February 6, 2014 Report Share Posted February 6, 2014 Client received a 1099 A for a timeshare that they abandoned in 2013. Box 2 and box 4 show the same amount (7078.82) . Nothing is check in box 5 and box 6 says a timeshare. Do I have to wait for a 1099 C before I can determine whether the amount is taxable or not. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 6, 2014 Report Share Posted February 6, 2014 1099-A lets you know a "sale" took place. Report the sale. If a 1099-C arrives, that will report cancellation of debt. Then report the income, or exclude it if qualified, in that year. (By the way, a lender can send only the 1099-C if he chooses and the debt was canceled in the same year as the abandonment.) Quote Link to comment Share on other sites More sharing options...
Mr. Pencil Posted February 7, 2014 Report Share Posted February 7, 2014 Box 2 and box 4 show the same amount (7078.82) . Nothing is check in box 5 No reason to expect cancellation of debt. FMV covered the balance due, and it was a non-recourse loan anyway. Report capital gain or loss in the ordinary way according to adjusted basis. Presumably a loss would be non-deductible unless the timeshare was being used as business or rental property at the time, Quote Link to comment Share on other sites More sharing options...
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