Received Form 1099-A for our Timeshare cancellation but not a 1099-C

Forum|Forum|4 years ago
February 13, 2022
2 replies
3 views

We have been in the process of getting out of our timeshare. In April 2021, the timeshare company notified us that they were "accepting back our Membership in satisfaction of the balance, and the obligations due from us to them will be deemed discharged as a result....Thereafter, we will not have any Membership rights and will not have any further obligation to make payments under the Agreement." We recently received a Form 1099-A regarding the "Acquistion or Abandonment of Secured Property" which states that the FMV exceeds the Balance of Principal Outstanding and has the box checked for "the borrower was personally liable for repayment of the debt." We have not received a Form 1099-C or anything else. What do we need to do for proper filing of our 2021 Tax Return? What forms need to be filed and how do we properly enter them using Turbo Tax?

MinhT1

Level 15

Please read this TurboTax Help topic on What do I do with Form 1099-A?

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Suzanne17Author

Level 2

I read all of the information in the link but it still doesn't answer my questions. Where in Turbo Tax do I go to enter my 1099-A information? When I clicked on the section asking if I had received a 1099-A or 1099-C form, I responded "Yes" but then it only prompted to enter in 1099-C information which I do not have.

ColeenD3

Level 15

You don't enter it. Keep it for your records, you may still get a 1099-C.

You may get Form 1099-A (Acquisition or Abandonment of Secured Property) if your lender foreclosed on your mortgage or repossessed property as a result of a defaulted loan.

If your 1099-A is for personal property, like your personal residence or automobile, you don't need to report it. However, hang on to this form and keep it with your tax records.

On the other hand, if you got a 1099-A for business or investment property (like a rental), we highly recommend that you consult a tax professional for further advice.

Rick19744

Level 13

Some additional facts would be helpful:

Are there amounts in box 2 and 4?
If so, based on your facts, I am assuming box 2 is the lower amount?
You will need your original purchase statement to determine your original purchase price
Assume there was a date in box 1?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Suzanne17Author

Level 2

To answer your questions....

Are there amounts in box 2 and 4? Yes
If so, based on your facts, I am assuming box 2 is the lower amount? Box 2 is lower than 4
You will need your original purchase statement to determine your original purchase price
Assume there was a date in box 1? Yes