My mother passed from COVID and she owned two taxi medallions in NYC in the name of a corporation. I received two 1099-C’s in the name of the corporation for her loan on the medallions. The 1099-C’s have “ the debtor was personally liable for repayment of debt” The estate only has $2k in the estate account, the corporations has $5k. The only assets are the medallions which there are no buyers for at this time . Would the corporation or the estate be responsible for the tax’s due on which is now considered income, which is $13k? Could this be excused by the IRS as both entities would be insolvent?
