Reporting Forms 1099-C and 1099-A
If your client came in with Form 1099-C and/or 1099-A, would you know how to properly report them? Forms 1099-C and 1099-A can often leave clients worried or confused, so it’s your job as their tax professional to understand the basics of cancellation of debt income and how to report on a client’s income tax return. This webinar walks through the basics of reporting Forms 1099-C and 1099-A.
Taxpayers can have recourse or nonrecourse debt, they can receive a 1099-A, but no 1099-C and they can be solvent, insolvent or bankrupt. How to properly report these forms will depend on the taxpayer’s specific circumstances at the time the debt was cancelled. This webinar explains the proper reporting of Form 1099-C and 1099-A in a variety of client situations, such as credit card debt, rentals, personal residences and decedents. Additionally, we’ll review how a 1099-C is reported when there are co-signers or more than one obligor on a loan.
Upon completion of this course, you will be able to:
- Distinguish between recourse and nonrecourse debt.
- Classify debtors as solvent, insolvent or bankrupt.
- Describe Forms 1099-C and 1099-A.
- Identify when each form should be issued.
- Properly calculate and report income from cancellation of debt.
- Outline the treatment of cancellation of debt when more than one taxpayer is obligated to pay the debt.
This webinar includes the presentation slides, exam questions, live webinar recording with review questions, and Q&A transcript. CPE is issued after exam is successfully completed.
Randy Adams, EA