KATHERINE Posted February 9, 2022 Report Share Posted February 9, 2022 Hi dear friends here, I have question: the business owner used personal guarantee to get a loan liable by his company. The debt got cancelled by bank. The bank issue 1099C to both the company and the business owner. I think it is duplicated and request the bank to remove the one issue to the business owner. They refused. How should I handle this? Thank you! Kate Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted February 9, 2022 Report Share Posted February 9, 2022 The bank handled it correctly. See if Pub 4681 answers your questions for your particular circumstance. Quote Link to comment Share on other sites More sharing options...
KATHERINE Posted February 10, 2022 Author Report Share Posted February 10, 2022 I went 1099C instruction, it said so, I think I will check with bank again. It is so confusing. Thank you, Kathy! Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted February 10, 2022 Report Share Posted February 10, 2022 Are you sure the loan docs have it as guarantor instead of co-signer? Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 10, 2022 Report Share Posted February 10, 2022 Report both 1099Cs then back out one of them with the explanation, " Reported on Form xxxx Ein xx- xxxxxxx. Don't spend any more time wrestling with the bank, you will just get dirty. Quote Link to comment Share on other sites More sharing options...
KATHERINE Posted February 10, 2022 Author Report Share Posted February 10, 2022 27 minutes ago, cbslee said: Report both 1099Cs then back out one of them with the explanation, " Reported on Form xxxx Ein xx- xxxxxxx. Don't spend any more time wrestling with the bank, you will just get dirty. Hi Kathy, he was taking personal guarantee but he is not the borrower itself. If I accept both 1099C, then the IRS will count other income twice; otherwise, how should I offset it, report as nominee? Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted February 10, 2022 Report Share Posted February 10, 2022 If it make the most sense to report it on Corp return, then I'd put it on 1040 Sch1 line 8c and also negative amount with short explanation on line 8z I'm assuming you checked if there is any exclusion due to insolvency? Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 10, 2022 Report Share Posted February 10, 2022 Katherine, since you haven't said what kind of entity is the business, it's a bit unclear? Quote Link to comment Share on other sites More sharing options...
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