1099-C Question

[ilzhoefer]

I have a general question concerning a short sale and a 1099-C.

I had a short sale completed in Dec of 2012 with the deficiency waived (yes I have the HUD and other documents indicating the deficiency will be waived), but I never received a 1099-c, so I went ahead and filed my 2012 taxes without reporting the canceled debt.

Last week I went to the IRS office and requested a transcript and still no 1099 was reported to the IRS.

So my question is: Should I amend my 2012 taxes showing the canceled debt to the best of my ability?

Or assume that it will never come up since they are required to file it with the IRS in that year?? Or maybe not.

Oh, I am insolvent if I have to show it on my return.

Any thoughts?

[p-]

You need to talk to a tax professional.  In certain situations, there is no tax burden following short sale and foreclosure, but not in all.  See a CPA tax specialist.  It's worth a couple of hundred bucks to sort out for sure.

[birddog1962]

If you are insolvent this year, why not report it? Next year you could be in far better fianancial shape and may owe money on a 1099c.