ljwalters Posted April 1, 2010 Report Share Posted April 1, 2010 Client lost home to foreclosure 1099A was received but no 1099 C. Do I just ignore the canceled debt for this year.. Also, Client made no payment in 2009 so no deductions there but what do do about the Points they were amortizing. How do you get rid of them and can the be counted as interest when and if the 1099C comes in. Thanks Linda and Buddy Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 2, 2010 Report Share Posted April 2, 2010 Linda, Client won't get a 1099C. There is no COD income on the foreclosure of a non-recourse loan. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
ljwalters Posted April 2, 2010 Author Report Share Posted April 2, 2010 I'm pretty sur this is recource loan, they did a refinance to lowere interest a couple of years back. Linda and buddy Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 2, 2010 Report Share Posted April 2, 2010 The 1099A will tell you. Look for the box that is checked for "borrower is personally liable for this loan" or "borrower is not personally liable for this loan". Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
ljwalters Posted April 2, 2010 Author Report Share Posted April 2, 2010 the box borrower is personally liable for this loan. Linda Quote Link to comment Share on other sites More sharing options...
ACS41 Posted April 3, 2010 Report Share Posted April 3, 2010 the box borrower is personally liable for this loan. Linda They will eventually get one once the bank sells the property. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 6, 2010 Report Share Posted April 6, 2010 >>Do I just ignore the canceled debt for this year<< Why do you think there was any cancelled debt? If it was a non-recourse loan, the debt was satisfied in full by the property itself. That's what non-recourse means. If it was a recourse loan (which it apparently was), they still owe whatever they still owe. That's what recourse means. That's what personally liable means. Even if the bank takes the house for whatever value, they still owe the rest of the balance due. That's what no 1099-C means. Quote Link to comment Share on other sites More sharing options...
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