1099-S and 1099-C

[Chowdahead]

I have a client who received a 1099-S with $175,000 in Box 2. They had their single family home sold in short-sale on 12/23/2008. They lived in the house the past 5 years.

Since it is a single family, does this have to be reported on the return? If it does, which form or schedule is used to report it?

While I'm on the topic, which form/schedule is used to report any amounts on a 1099-C "Cancellation of Debt" form? This client didn't receive one, but I'm pretty sure I will see at least one between now and the filing deadline.

[Terry D EA]

The home sale is reported on Schedule D and falls under the 121 exclusion. On form 1099C, there is an input form within ATX for the 1099C and the information will flow to the 1040 as taxable income unless your client would be insolvent or the debt had been discharged in a bankruptcy proceeding.

Terry D.

[kcjenkins]

Although techically, you do not have to report a §121 sale, if the client gets a 1099S I think it is always best to file the Sch D and show that you claimed the exclusion. Just saves the client getting a letter later.

[ljwalters]

Terry D

I do not find the 1099 C in the forms list for ATX. Exactlly where is this input form.

Linda and Buddy

[Terry D EA]

I am sorry for the confusion with the input form for the 1099C. You are right, there isn't one. The information from the 1099C is put on line 21 of the 1040. Drop down the window and scroll down a bit and you will find it. Don't know what I was thinking when I originally responded. Long day

Terry D.