A client received 1099A and 1099C for the same property, box#1 on both forms have same date on 1099C box#2=261079.06, box#7=133296.00 and liable or repayment YES. 1099A box#2 and #4=310072.96, liable for repayment NO, how do I report this forms?
Enter it on the appropriate worksheets.
tyvm, but still confuse, my understanding is that on 1099-C the amount owe is "BOX#2 plus BOX#7" (261079.06 $debt canceled+133296.00 FMV= 394375.06) but 1099-A shows BOX#2 & #4 310072.96, Box#4 is the FMV, same date on both forms but different FMV amounts, Am I understanding this wrong.......or bank made a mistake on the forms? client says that Bal owe is amount shown on BOX#2 of 1099-C...tyvm for help
Are they both for the same property? Were the debts cancelled at different times creating a difference in FMV. Enter the info onto the worksheets. Then do the research on how to handle any results.
The only way to learn tax preparation is to tackle the unfamiliar, do the research and become an expert on the subject.
tyvm Charlotte for your response, and yes I'm doing the research since I'm here asking and you friendly helping by answering, as I say at the begining it's for the same property and both have the same date, the property is the principal residence so it does qualifieds for the indebtedness....do I need to use a worksheet for each form? cause program automatically uses one but it doubles the amounts, for sure im doing something wrong, will tried worksheet for each form. thank you very much, all your help is very appreciated
There is a 1099-A worksheet and a 1099-C worksheet. Enter each on the appropriate worksheet.
Very little instructions from intuit for these worksheets. I had to do all the my calculations by hand to make sure I was filling in the worksheet correctly.
That's not necessarily a bad thing. By working things through by hand, you have a greater understanding of the process and can if there is a programming problem or something you missed. Good job.
I do not see any calculations to be done on the 1099-A or on the 1099-C worksheet. You simply copy the info on the original documents.
The Form 1099 A is for abandonment of property and is issued for the primary loan and 1099 C is for the second mortgage, check whit your taxpayer to verify or the RESPA on the purchase or RE-FI docs.
In my case the taxpayer had a 2 unit building and live in one of the units so 1/2 of the debt will be forgiven if they qualify. the other 1/2 is linked ( thru the worksheet) to Schedule E. If I remember right In the worksheet you have to input price, improvement cost and expense. Don't remember if you input totals or if you have to use 1/2 of totals. I had to do it by hand so I would know what the final figures would be. Do not close the depriciation worksheets in Schedule E or you will double the profit figure.
