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We have a client who received a 1099-C for a foreclosure. It was a California home and primary residence. The debt was purchase money. The mortgage servicer indicated that the client was personally liable on the 1099. We disagree and will attempt to have them revise the 1099. In the meantime the return is due on October 17. We've excluded the COD for federal purposes and plan on showing a sale of the home with the proceeds being the amount of the nonrecourse debt relief on CA Sch D. Is this the best way of handling?