elfling Posted February 5, 2011 Report Share Posted February 5, 2011 Okay, brain freeze here ..... Client died November 2009. Only heir is a minor child now in her grandfather's care. Decedent's 2010 income = 1) W2 - $2000 bonus due to him was paid in Jan 2010 -- IRD, 1041 line 8. 2) SSA-1099 - $5000 2009 SS disability paid in 2010, noted as such via * in lower left -- does or does not impact 1041? 3) 1099-C - box 1 dates 1/13/10, box 2 amounts $1897 + 2932 -- again, does or does not impact 1041? List where? If cancelled debt counts, I forsee potential for over $1000 in tax due. Blah! Quick research coming up empty. No time just now for in-depth re-study of 1041. Appreciate any input from the board. Thanks! Elfling Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 5, 2011 Report Share Posted February 5, 2011 Debt cancellation is not taxable if TP or whoever is in his shoes is insolvent. Quote Link to comment Share on other sites More sharing options...
elfling Posted February 5, 2011 Author Report Share Posted February 5, 2011 Thanks, Pacun! I knew that. Just one of those "Duh?" moments when I couldn't pull it up in my mind. Absolutely makes sense that a deceased tp is insolvent. How'd we get so tired so fast? Quote Link to comment Share on other sites More sharing options...
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