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Posted on: 07th Feb, 2011 08:46 am
We owned a timeshare and gave the deed back instead of a foreclosure. The timeshare company was agreeable to this. We have now received a 1099C for the amount of the debt. Are they still able to do this and does this need to be claimed as income?
Hi Cambam!

Welcome to forums!

You will receive the 1099c form when your lender forgives any deficient balance resulting from the sale of the property. I guess after the foreclosure sale, you were not liable to pay any deficient amount to the lender. As a result the lender has issued the 1099c form. The forgiven debt will be considered as your income and you'll be liable for paying taxes on the forgiven debt.

Feel free to ask if you've further queries.

Posted on: 07th Feb, 2011 06:41 pm
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