How do I file a 1099-C Cancellation of Debt for a deceased parent?
My parent died a few years ago. An estate was created to manage their property as a rental and tax forms filed annually. There is no equity in the property and the estate has negative income so the property will either go into foreclosure or short sale. When the 1099-C comes in, how should this be filed? Will I have to report this as income on my tax forms? Are there other forms that should be submitted that will reduce or exclude my tax liability (if any)? Note: the property is still in the parents name/SSI.