1099C for loan modification

[mrichman333]

Hi Everyone, I have clients that refinanced their mortgage and the loan company sent them a 1099C.  How do I indicate this is not taxable? Do I use for 928 and what line do I use.

 

Thanks

Mary

[Lee B]

Based some reading I did last summer I believe there are certain kinds of loan modifications that can generate a taxable 1099C

Your client would have received lots of information spelling this all out.

Either way you need to ask your client for all of the info which hopefully they saved. 

[grandmabee]

the form would be 982 but you need to work the numbers to see if it qualifies for non taxable.  this was in the extenders bill passed in February.

 

[Pacun]

If that 1099-c comes from their primary residence, just use form 982 and select primary residency and (I THINK) you have to go to the second part of the form and state that you will reduce your basis but the amount forgiven. No explanation needed when primary residency and the IRS has honored all my requests.