1099 A

[sshams95]

Client received 1099 A as follows:

Box 1 10/16/08

Box 2 292,450 as principal balance outstanding

Box 4 355,000 as FMV of property

Client did not receive 1099C and also filed for bankruptcy in 2008.

Do I need to report this?

[David1980]

Taxpayer used to have property. Taxpayer no longer has property. So you have a gain/loss on disposition of property. Depending what kind of property it is, the loss might not be deductible and the gain might be excludable with section 121.

Though with those numbers there is no cancellation of debt income. So you only have to worry about the gain/loss on disposition of an asset.