JACKSORH Posted February 6, 2014 Report Posted February 6, 2014 Client received a 1099 A for a timeshare that they abandoned in 2013. Box 2 and box 4 show the same amount (7078.82) . Nothing is check in box 5 and box 6 says a timeshare. Do I have to wait for a 1099 C before I can determine whether the amount is taxable or not. Quote
Lion EA Posted February 6, 2014 Report Posted February 6, 2014 1099-A lets you know a "sale" took place. Report the sale. If a 1099-C arrives, that will report cancellation of debt. Then report the income, or exclude it if qualified, in that year. (By the way, a lender can send only the 1099-C if he chooses and the debt was canceled in the same year as the abandonment.) Quote
Mr. Pencil Posted February 7, 2014 Report Posted February 7, 2014 Box 2 and box 4 show the same amount (7078.82) . Nothing is check in box 5 No reason to expect cancellation of debt. FMV covered the balance due, and it was a non-recourse loan anyway. Report capital gain or loss in the ordinary way according to adjusted basis. Presumably a loss would be non-deductible unless the timeshare was being used as business or rental property at the time, Quote
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