1099advisor.com | 2010 IRS Form 1099-C
Attorney David Stonehill

Attorney David Stonehill
David N. Stonehill Co., LPA
400 Oliver Road
Cincinnati, OH  45215-2507

Telephone: (513) 739-7899

 


 AVOID INCOME TAX
ON A SHORT SALE !
You may qualify to exclude cancellation of debt income.

When you finance the purchase of real estate, you sign two very important documents: a promissory note and a mortgage. With the short sale of real estate, your lender agrees to accept less than you owe upon the promissory note, and to release its mortgage upon your real estate that secures the note.

This usually happens when the loan exceeds the value of the real estate. Many lenders would rather have a quick sale and settlement than a foreclosure. Because debt is forgiven, every short sale will create cancellation of debt (“COD”) income.

If you are involved in a short sale, you should receive from the lender a Form 1099-C which reports the amount of debt that is being forgiven. The IRS gets its copy. You include COD income as “other income” on your federal income tax return. This increases your taxable income, and thus your income taxes . . .

UNLESS you can claim a specific exclusion from the COD income. The burden is upon you, the taxpayer, to claim a valid exclusion pursuant to IRS regulations, and to fill out the forms and schedules completely and accurately.

Congress today has pending legislation which excludes COD income from short sales of principal residences, but not without qualifications, elections and subsequent tax consequences. Many situations are further complicated by other liens and debts, other depreciable real estate holdings, and disputes about exactly what should be reported on Form 1099-C.

                      Plan ahead. Act today.

This is where I may be able to help you. If you are concerned about COD income arising from a short sale or other debts, I advise my clients about how they may avoid or postpone all or part of any additional federal income tax liability.

                       CALL: (513) 739-7899

Or, fill out this form and submit it to me.  I'll get back to you in about 24 hours with informaton that I hope you will find helpful.  Your information will be treated confidentially.

--Fill-In Form:-------------------------------------------------------

Your first name: First letter of last name:

Your email address (required):

Your telephone number: (I'll call you instead)

Dollar amount on Line 2, Form 1099-C:

Check if this deals with a "short sale":

Briefly explain your situation giving rise to the discharge of debt. If you have other debt, please indicate about how much, and whether that's been discharged, too:


Every situation is unique. Not everyone qualifies for an exclusion. I will discuss your circumstances in confidence, without any charge for my initial consultation. You have no obligation to engage my services during or after your initial call.

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Cancellation of Debt Income explained.
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I, David N. Stonehill, have prepared the materials that are presented on this website on behalf of David N. Stonehill Co., LPA, my Ohio legal professional association. My intent is to provide information about my services offered to prospective clients, and to provide general information about federal tax matters concerning IRS Form 1099-C.

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