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Posted

I am reposting.

This is a rental and I found the old posts and how to handle the 1099a and 1099c. In this case there are 2 separate series of 1099s and both 1099As are from the same financial institution and both have the same amount as FMV. But the client only received one 1099C. Does this mean she will not receive a 1099c on the 2nd mortgage or do we still need to wait.

And I am assuming I only use the FMV once as the sale price of the rental.

This is all so confusing this year.

Thanks in advance

Linda and buddy

Posted

Whether or not or when debt is forgiven is a separate issue from the sale/dispositions/abandonment of the property. You'll get a 1099-C when the financial institution decides they will not be able to collect on the debt or maybe never.

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