1099 C NOTICE – This is important information and being furnished to the IRS .
If you are required to file a return a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines it has not been reported
Now we attack the foreclosure
If you own stock (ATM LLC) that became worthless last year. Is this a bad debt? How do I report my loss?
Answer: If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt. Worthless securities also include securities that you abandon. To abandon a security, you must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for it.
Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year. You must determine the holding period to determine if the capital loss is short term (one year or less) or long term (more than one year).
Report worthless securities on Form 8949, Part I or Part II, whichever applies. Indicate as a worthless security deduction by writing Worthless in the applicable column of Form 8949.
– Tax Topic 453 – Bad Debt Deduction
– Publication 550, Investment Income and Expenses (Including Capital Gains and Losses)
– Losses (Homes, Stocks, Other Property)
– Capital Gains, Losses, and Sale of Home
See the IRS website for more information
It’s a tax matter issue for God’s sake
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