Cancellation of Debt on repossed car

[baw8449]

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

Do you have to pay taxes under the cancellation of debt if the car was repossed in 1995? Company is charging over $7000.00. Was wrote off in 2008. Is there a statue of limitation on something like this.?

I had no assets at that time.

 

[LdiJ]

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

Do you have to pay taxes under the cancellation of debt if the car was repossed in 1995? Company is charging over $7000.00. Was wrote off in 2008. Is there a statue of limitation on something like this.?

Were you insolvent at the time that the car was repossessed? Were your debts greater than your assets by at least $7000.00?

It is more than a bit much that the finance company waited 13 years to issue a 1099C.

 

[baw8449]

Cancellation od debt

I had no assets at that time, still don't have any.

 

[LdiJ]

I had no assets at that time, still don't have any.

Ok, did you get a letter from the IRS saying that you left the 1099C off of your tax return?

If so, you respond to the IRS by writing a letter explaining that the 1099C was for a car that was repossessed in 1995 and that you were insolvent at the time that the car was repossessed, and fill out and include form 982 claiming insolvency.

Or, even better, have a tax professional handle the response for you.