- Jurisdiction
- Illinois
My question: I am in the process of settling a lawsuit (pro se) with a bank for zero, zero..ie each side is walking away with no money or no reimbursement of legal fees BUT the bank wishes to issue a 1099-c. I attempted to contact the IRS and they said they couldn't answer the question seeing it wasn't tax season. My accountant has raised the concern that if I accept the 1099-c as part of the agreement I may be responsible for taxes.
History: I sold my primary residence which I resided in continually for over a decade in 2011as a short sale. The bank had stated they would issue a 1099-c in 2011 but did NOT. They wish to issue the 1099-c now in 2016. My concern, although in 2011 I qualified for the Mortgage Debt Forgiveness Act for my primary residence...will I still qualify for the Act if the 1099-c is issued in 2016 which is 5 years after the sale. I obviously haven't lived in the house since I sold it 5 years ago. My accountant has raised concerns about the requirement of residing in the primary residence 2 out of the 5 years. Obviously at the time of the sale I meet the requirement but not now..5 years later. I have attempted to call a number of lawyers but no one seems to specialize in this area to help me.
Does anyone know, will I still qualify for the discharge of the 1099-c filed 5 years after the actual sale under the Debt Act?
History: I sold my primary residence which I resided in continually for over a decade in 2011as a short sale. The bank had stated they would issue a 1099-c in 2011 but did NOT. They wish to issue the 1099-c now in 2016. My concern, although in 2011 I qualified for the Mortgage Debt Forgiveness Act for my primary residence...will I still qualify for the Act if the 1099-c is issued in 2016 which is 5 years after the sale. I obviously haven't lived in the house since I sold it 5 years ago. My accountant has raised concerns about the requirement of residing in the primary residence 2 out of the 5 years. Obviously at the time of the sale I meet the requirement but not now..5 years later. I have attempted to call a number of lawyers but no one seems to specialize in this area to help me.
Does anyone know, will I still qualify for the discharge of the 1099-c filed 5 years after the actual sale under the Debt Act?
