1099-C Assets and Liabilities

[livewire78602]

What is the name of your state (only U.S. law)? Texas

Under Claiming Insolvency.

When creating a list of Assets and Liabilities. Under Liabilities, do I put all "Monthly" payments such as on Cars im financing, Mortgage, Insurance, Loans etc, or do I put what the "total amount" owed on these things such as total amount of loan owed? example 400 a month car payments, still owed 18,000 on vehicle so total Liabilty would be 18,000 And even tho I still owe on my vehicles, do I list the FMV of the vehicles under Assets even tho I owe more?

Reseon for 1099-c was:

Example, I owed around 485,000 on my house. A short sale was done for 435,000. The FMV was 450,000 so I would list under Liabilities 485,000 for house mortgage and under Assets would put 450,000 correct? Thus total liablity on this that I can use was 35,000

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

Under Claiming Insolvency.

When creating a list of Assets and Liabilities. Under Liabilities, do I put all "Monthly" payments such as on Cars im financing, Mortgage, Insurance, Loans etc, or do I put what the "total amount" owed on these things such as total amount of loan owed? example 400 a month car payments, still owed 18,000 on vehicle so total Liabilty would be 18,000 And even tho I still owe on my vehicles, do I list the FMV of the vehicles under Assets even tho I owe more?

Reseon for 1099-c was:

Example, I owed around 485,000 on my house. A short sale was done for 435,000. The FMV was 450,000 so I would list under Liabilities 485,000 for house mortgage and under Assets would put 450,000 correct? Thus total liablity on this that I can use was 35,000

You shouldn't have to use the insolvency exclusion for cancelled debt. You should be able to use the primary residence indebtedness exclusion instead. I would strongly recommend that you use a tax professional this year to ensure that your return is handled correctly as there are multiple forms that are needed. However, in the end you should not have to pay any tax on the cancelled debt.

However, to determine insolvency you put assets on one side of the page, at fair market value and debts on the other side of the page, based on total owed. You would basically be doing a net worth statement. Google "net worth statement" to figure out how to do that.

 

[livewire78602]

Form 982

Primary Residence Exclusion only applys to discharges of debt after 2006 or before 2010 as it says in Form 982, this was for tax year 2006, I am not allowed to use this exclusion. If this would of happend in 2007 then yes, I already checked on this rule with IRS and tax professionals. Double standard for us who lost our house in 2006 compared to those in 2007.

 

[livewire78602]

Still confused and need answere

Ok here is my main question, I dont own my two vehicles, Im making payments on them. Do I still even tho I dont own them , list their FMV under Assets, then list what the payoffs are on the vehicles under liabilities? Or just put them under Liabiliities since I dont own them and not Assets?

Same with the house, list total mortgage payoff under liabilities and FMV under assets?

These are what I mainly need answered and would explain other items.

 

[LdiJ]

Ok here is my main question, I dont own my two vehicles, Im making payments on them. Do I still even tho I dont own them , list their FMV under Assets, then list what the payoffs are on the vehicles under liabilities? Or just put them under Liabiliities since I dont own them and not Assets?

Same with the house, list total mortgage payoff under liabilities and FMV under assets?

These are what I mainly need answered and would explain other items.

I would have to know what you mean by you don't own the vehicles. However I suspect that yes, you would list the FMV on one side, and the principal balance due on the other.

Same with the house, FMV on one side, principal balance due on the other.

Same with all of the rest of your assets and debts. The difference between the two is either your net worth (if assets are greater than liabilities) or your net insolvency (if liabilities are greater than assets). Your net insolvency is the amount that you an exclude from income in relation to 1099Cs.

 

[livewire78602]

Vehicle owning

What I meant owning the vehicles is, I dont own them till the pink slip is signed over to me. I am not able to liquidate them unit I can sign over the pink slip. So I am financing my vehicles, the banks own them till I pay them off. So this is why I am asking this. Most sample forms I see on the internet assume you own the vehicles flat out, not financing them and list them under assets this way and not under liabilities. But if you are still paying on them this makes it confusing. This was my main question under Assets and liabilities. So I guess I list them both under Assests and Liabilities then.

 

[LdiJ]

What I meant owning the vehicles is, I dont own them till the pink slip is signed over to me. I am not able to liquidate them unit I can sign over the pink slip. So I am financing my vehicles, the banks own them till I pay them off. So this is why I am asking this. Most sample forms I see on the internet assume you own the vehicles flat out, not financing them and list them under assets this way and not under liabilities. But if you are still paying on them this makes it confusing. This was my main question under Assets and liabilities. So I guess I list them both under Assests and Liabilities then.

Yes, you list the FMV under assets and the principal payoff under liabilities.