1099-C to which line?

Discussion in 'Tax' started by Vic Dura, Feb 5, 2004.

  1. Vic Dura

    Vic Dura Guest

    Can anyone tell me where to declare income reported on a
    1099-C (cancellation of debt)? I'm thinking form 1040/line
    21. Is that correct?

    Thanks for any help.

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    Vic Dura, Feb 5, 2004
    #1
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  2. "Vic Dura" <> wrote:

    > Can anyone tell me where to declare income reported on a
    > 1099-C (cancellation of debt)? I'm thinking form 1040/line
    > 21. Is that correct?


    That is where it would go, if it is taxable.
    Are you sure it is taxable?

    Gene E. Utterback, EA

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    Gene E. Utterback, EA, Feb 6, 2004
    #2
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  3. Vic Dura

    Phil Marti Guest

    Vic Dura <> writes:

    > Can anyone tell me where to declare income reported on a
    > 1099-C (cancellation of debt)? I'm thinking form 1040/line
    > 21. Is that correct?


    Possibly. Turn it over and look at the back.

    Phil Marti
    Topeka, KS

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    Phil Marti, Feb 6, 2004
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  4. Vic Dura

    Wayne Brasch Guest

    "Vic Dura" <> wrote:

    > Can anyone tell me where to declare income reported on a
    > 1099-C (cancellation of debt)? I'm thinking form 1040/line
    > 21. Is that correct?


    Line 21 Other Income is the right place. Label it as
    Cancellation of Debt and put in the amount from the Form
    1099-C.

    Wayne Brasch, CPA, M. S. Taxation

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    Wayne Brasch, Feb 6, 2004
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  5. Vic Dura wrote:

    > Can anyone tell me where to declare income reported on a
    > 1099-C (cancellation of debt)? I'm thinking form 1040/line
    > 21. Is that correct?


    Right.

    but first be sure the amount is indeed taxable; there might
    be an exception.

    Cheer$,
    Harlan Lunsford, EA n LA

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    Harlan Lunsford, Feb 6, 2004
    #5
  6. Vic Dura

    Vic Dura Guest

    >> Can anyone tell me where to declare income reported on a
    >> 1099-C (cancellation of debt)? I'm thinking form 1040/line
    >> 21. Is that correct?


    > Right.
    >
    > but first be sure the amount is indeed taxable; there might
    > be an exception.


    Thanks to all who suggested that I verify that the debt
    cancellation is taxable. I didn't know there could be
    exceptions. I thought all debt cancellation was taxable.

    Here's more information: The question relates to a TCE
    "client" that came to my site with a 1099-C for cancellation
    of credit card debt. There was no bankruptcy involved. She
    said that she didn't have the money to pay the debt (this is
    a hard luck story) and thought that the CC company just got
    tired of trying to get blood from a stone.

    Could someone tell me where to read about or give me an
    example of canceled debt that is *not* taxable?

    Thanks.

    --
    To reply to me directly, remove the XXX characters from my
    email address.

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    Vic Dura, Feb 10, 2004
    #6
  7. Vic Dura

    Vic Dura Guest

    >>> Can anyone tell me where to declare income reported on a

    > Could someone tell me where to read about or give me an
    > example of canceled debt that is *not* taxable?


    Never mind. I found it in Pub-17 under "Cancellation of Debt".

    --
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    email address.

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    Vic Dura, Feb 10, 2004
    #7
  8. Vic Dura

    Phil Marti Guest

    Vic Dura <> writes:

    > The question relates to a TCE
    > "client" that came to my site with a 1099-C for cancellation
    > of credit card debt. There was no bankruptcy involved. She
    > said that she didn't have the money to pay the debt (this is
    > a hard luck story) and thought that the CC company just got
    > tired of trying to get blood from a stone.
    >
    > Could someone tell me where to read about or give me an
    > example of canceled debt that is *not* taxable?


    You may have just given an example. The cancelled debt is
    not income if the debtor was insolvent at the time the debt
    was cancelled.

    Phil Marti
    Topeka, KS

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    Phil Marti, Feb 11, 2004
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