My wife filed for Chapter 7 in April 2011, in there, she put a Time Share (that was the main reason she filed because they did not wanted to cancel it or stop the process). This year, we received a 1099-A, 11 years later, is this allowable? On box 1 "05/12/2022". Box 5 "Checked". Amounts on Box 2 and 5. Box6 "Vacation Ownership Interest". I was doing our taxes and getting a refund, adding this, we have to pay. What can we do?
You do not have to enter the 1099-A if it's for personal property, such as a home or a car, you don't need to report it in your return. Keep this form for your records in case you get a 1099-C that indicates the debt has actually been forgiven.
Even though it was 11 years ago? is there a time limitation for them to send that 1099-C? The bankruptcy was 11 years ago and they never sent us a "Late Fee" letter or anything. So we just "not worry" about it, correct?
Thank you for your quick response
Because she filed for Bankruptcy, the debt is cleared (that is the purpose of the bankruptcy)- it is strange that they waited so long (if I had to guess they probably never took it off their books so this is how they are closing it out).