Question

Do I report it if I received a 1099-C for cancellation of a debt by a timeshare company. Line 2, amount of debt discharged says $0.00! FMV says $15,554.62.

Forum|Forum|2 years ago
March 4, 2024
1 reply
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I tried adding a 1099-C in turbotax, and it did not show up after I entered $0.00 as instructed for lines 2 and 3.

TurboTax Deluxe Online

If no debt was discharged, and the form you received only shows the fair market value of a timeshare property that you relinquished, then you don't need to report it on your return.

If, as is usually the case, the timeshare was a personal use property, there is no deductible capital loss to report.

See this tax tips article for more information about cancellation of debt.

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vectormamaAuthor

Thanks very much for this info. Now it makes me wonder if my 2011 tax return included this provision. I had gotten divorced and ex got one house and I got the other one. Ex didn’t pay a dime of the mortgage for his house (it was mortgaged in my name only). I had to take him back to court and got that house legally deeded back to me so I could sell it. Had to sell at a $40k loss. I do remember getting a 1099-C from the mortgage company that year. Now I’ll have to go back and check if I paid any taxes on it. It’s been long enough I’m not sure I’d be entitled to recover any money if I did pay taxes on it.