Another Rental Foreclosure Question

[Tax Prep by Deb]

Just got informaiton from a client who had a 1099-A issued in 2009 for a rental property. It is a recourse debt, however client has not yet received a 1099-C.

Question: Do I report this on the 4797 for this year and then treat the 1099-C if received next year?

My client is filing Bankruptcy and this debt is included in the filings. Does this make any difference?

My client is defintely insolvent, largely due to the upside down in the realestate in California.

When I dispose of the asset do I use the difference on the 1099-A between balance of princiapl outstanding on the loan from the fmv of the property as listed on the 1099-A.

I am so tired of dealing with these and I thought I had seen my last one for this year.

Please help as I am getting extremely tired, as I'm sure all of you are as well!

Thanks for any imput,

Deb!

[TAXBILLY]

Deb:

Since you just received this info from the client why not make it easy on yourself and file an extension?

Life is short. :~)

taxbilly