bankruptcy court in mid dec. homes foreclosed in oct. will i see 1099 next yr?

Question

i'm worried. i heard after court and once bankruptcy goes through, it takes 2 mo. to finalize etc. true?
i got 2 homes foreclosed late this year and i think around january is when people gets irs w2's etc. right...?

1009c with debt cancellations, i can't afford paying irs... it's too much for me.
will i still get that even after filing bankruptcy?
i think bankruptcy is supposed to prevent from getting 1099. will i need to hire a tax professional to file my tax...? thanks

Answer 1

I don't think bankruptcy necessarily stops the entity from sending you the 1099 because they're still planning to write off the bad debt, but you should see a tax professional about whether you need to worry about that as you are about to have a discharge and by the time you file your taxes it will be discharged.

Answer 2

I assume you are insolvent because you mentioned bankruptcy. If you are insolvent at the time, cancellation of debt income is not taxable to you. I also recommend that you see a qualified tax professional (Enrolled Agent (EA) or CPA) to help you with your return. Good luck.

Jim Kirby, CPA

Answer 3

You'll still get the 1099C, but might not have to pay some or all of the tax on it. It would be a good idea to have a CPA (NOT someplace like H&R Block or Jackson Hewitt) do your taxes this year..

Answer 4

if the loan was purchase money NO
If a refinance loan most likely.
suggest you go to a CPA. you really need to speak to a CPA