I am the executor of my deceased father's estate. At the time of his passing, he had credit card debt. I negotiated with the credit card company to cancel a little over $2,500 of the debt. I received a Form 1099-C from the credit card company. The form is in my father's name with his SSN listed. I know the canceled debt is income to the estate. I also know I need to file Form 1041 for the estate because the canceled debt is greater than $600. I filed an extension before 4/18/2023 and paid estimated taxes. As additional information, my father passed in 1/2022, his estate is solvent, and an EIN has already been assigned. I am ready to file Form 1041, but I have several questions needing answers before I file. Here are the questions.
1. Should Form 1099-C have been issued in the estate's name with the assigned EIN, or is the as-issued Form 1099-C okay?
2. If Form 1099-C should have been issued in the estate's name, do I ask the credit card company to reissue the 1099-C in the estate's name with the assigned EIN, or do I file a new 1099-C along with Form 1096 with my father as payer and the estate as filer?
3. Is Form 1099-C entered in the Other Income section of Form 1041?
Thank you.
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The form as issued is fine and “other income “ is appropriate.
The form as issued is fine and “other income “ is appropriate.
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