short sale 1099 c
did a short sale of vacant land in 2008 with bank forgiving 120k. there were 3 of us on the deed and was told we would each get a 1099 c for 1/3 each.instead we each received a 1099 c for 120k. did the bank make an error,for that would be like a 360k forgiveness tks for your help
1 Answer from Attorneys
Re: short sale 1099 c
The bank debt was probably a joint and several liability. That means the bank could recover the full amount or part of it from any one of you. However,they could not recover the full amount more than once.
The bank doesn't know what the agreement between the three of you may be as to who is liable for this debt. Do you have one? There may be other rules of state or tax law that could affect this treatment and it should be researched. The three of you may want to contact the bank and ask them to reissue the 1099s on a prorata basis. I doubt they will, but it's worth a try. Then discuss it with your accountant. He may be able to attach an explanation to your returns as to why you are only reporting a portion of the 1099.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
