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1099 and personal guarantee - exception under CFR Title 26, Ch 1, Sub A, Pt 1, Sec 1.6050P-1(d)(7)
Mike:
To what lost deduction are you referring? How would a guarantor get a deduction for a debtor making a payment?
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Nov 2, 2015, at 11:16 PM, Michael Avanesian michael@avanesianlaw.com [cdcbaa] wrote:
>
> I am not a tax expert by any means. I had not seen that section before but it deals with whether certain discharge of indebtedness had to be reported, not whether the money is actually owed.
>
> I would rely on IRC 108(e)(2) which says, "(2) Income not realized to extent of lost deductions No income shall be realized from the discharge of indebtedness to the extent that payment of the liability would have given rise to a deduction."
>
> Sincerely,
>
> Michael Avanesian, Esq.
> Avanesian Law Firm
> 101 N. Brand Blvd. PH 1920
> Glendale, CA 91203
> Tel: 818.276.2477 | Fax: 818.208.4550
>
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>
>> On Mon, Nov 2, 2015 at 3:09 PM, Holly Roark hollyroark22@gmail.com [cdcbaa] wrote:
>>
>> Tax people, does this really mean what it seems to say? If a guarantor settles a debt or the lender charges it off, the guarantor does not incur cancellation of debt income?
>>
>> (7) Guarantors and sureties. Solely for purposes of the reporting requirements of this section,
>> a guarantor is not a debtor. Thus, in the case of guaranteed indebtedness, reporting under this
>> section is not required with respect to a guarantor, whether or not there has been a default and
>> demand for payment made upon the guarantor.
>>
>>
>> Holly Roark
>> Certified Bankruptcy Specialist*
>> and Sports Lawyer
>> holly@roarklawoffices.com **primary email address**
>> www.roarklawoffices.com
>> Central District of California & District of Idaho - Consumer Bankruptcy Attorney
>> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>> T (310) 553-2600; F (310) 553-2601
>> *By State Bar of California Board of Legal Specialization
>
>
To what lost deduction are you referring? How would a guarantor get a deduction for a debtor making a payment?dDennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voiceOn Nov 2, 2015, at 11:16 PM, Michael Avanesian michael@avanesianlaw.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
I am not a tax expert by any means. I had not seen that section before but it deals with whether certain discharge of indebtedness had to be reported, not whether the money is actually owed. I would rely on IRC 108(e)(2) which says, "(2) Income not realized to extent of lost deductions No income shall be realized from the discharge of indebtedness to the extent that payment of the liability would have given rise to a deduction."Sincerely,Michael Avanesian, Esq. Avanesian Law Firm101 N. Brand Blvd. PH 1920Glendale, CA 91203Tel: 818.276.2477 | Fax: 818.208.4550
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