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02-01-2007, 11:10 AM
| | Junior Member | | Join Date: Feb 2007
Posts: 2
| | | Bankruptcy and 1099
I live in Ohio
I was discharged from BK Ch 7 in 05 and didn't reaffirm any debt. I have several investment properties and now I am getting a 1099a for two of them showing the fair market value to be a combined total of 60k under the amount owed. Am I going to be responsible for this on my taxes? |
02-01-2007, 11:31 AM
| | Senior Member | | Join Date: Jan 2001
Posts: 12,062
| | Quote:
Originally Posted by whdr02  I live in Ohio
I was discharged from BK Ch 7 in 05 and didn't reaffirm any debt. I have several investment properties and now I am getting a 1099a for two of them showing the fair market value to be a combined total of 60k under the amount owed. Am I going to be responsible for this on my taxes? | Yep. Time to talk to a tax professional.
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02-01-2007, 11:41 AM
| | Junior Member | | Join Date: Feb 2007
Posts: 2
| | | Then what was the point in filing the Bk? I assumed I would be protected from this? |
02-01-2007, 12:12 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | You filed bankruptcy because you wanted relief from your debts. Because you gained benefit from the amounts that you didn't pay back, that is income. Whether that income is taxable or not depends on the precise nature of the items the 1099s are for. See a tax professional to go through each item with you. It is possible the item is not taxable although you will have to explain the reasons why on your taxes. (Or, will get a letter "audit" for the difference.)
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02-01-2007, 07:30 PM
| | Senior Member | | Join Date: May 2001
Posts: 6,450
| | | Go to the IRS site and enter 1099a in the search engine. I think you'll find an exception to a 1099a is a debt included in bk.
Do let a tax professional show you how best to notify the IRS of the bk. At a minimum have copies of your schedule of creditors and your discharge letter. |
02-01-2007, 10:20 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | Not all debt forgiven is a bankruptcy is income. Some of it is. It depends. See someone to go through the facts.
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When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
02-10-2007, 11:52 AM
| | Senior Member | | Join Date: Feb 2002 Location: Nashville,TN
Posts: 15,706
| | | AS far as I know, you don't have to 'notify' the IRS of anything regarding a bankruptcy. I believe one of the 'automatic' notifications of a bankruptcy is to the IRS, along with state tax agencies etc.
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