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posted Apr 1, 2023 12:48:21 PM

1099C in two separate years for the same vehicle.

Our son received a 1099C for a discharged debt on a repo'd vehicle in 2021.  We filed that 1099C with his taxes.

 

We have received another 1099C for the same vehicle for a much larger amount for 2022. How many years can the loan company claim the loss on this vehicle?

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1 Replies
Level 15
Apr 1, 2023 2:46:53 PM

Typically a Form 1099-C will be issued once for a single debt, when a certain "identifiable event" has occured.

 

According to Specific Instructions for Form 1099-C in the Instructions for Forms 1099-A and 1099-C , a creditor will:

File Form 1099-C, Cancellation of Debt, for each debtor for whom you canceled a debt owed to you of $600 or more if:

  1. You are an entity described under Who Must File, later; and
  2. An identifiable event has occurred. It does not matter whether the actual cancellation is on or before the date of the identifiable event. 

Eight different identifiable events are described in When Is a Debt Canceled, in the instructions linked above.

 

You should contact the creditor who canceled the debt to see what's going on with your son's cancellation.