LeticiaF1
Expert Alumni

Business & farm

You will not need to include the 1099-C in your return.  It may need to be reported in her estate's return on Form 1041.  I am sorry for the death of your wife.  

 

Topic no. 431, Canceled debt – Is it taxable or not?

Publication 4681 (2025), Canceled Debts, Foreclosures, Repossessions, and Abandonments