Reporting Cancellation of Debt Income For Co-Obligors

by | Oct 13, 2015 | Personal Tax

have a client that purchased property secured by a mortgage with her daughter as joint tenants in common in Florida. However, the daughter uses the property as her principal residence, but not the mother. Unfortunately, they were underwater on the property and the mortgage was relieved in part. As such a form 1099-C was issued to both the owners for the full amount relieved. How should this be reported so that they both are not taxed and they can exclude it via IRC Section 108(a)(1)(E)?

1031 Exchange After Rental Converted To A Home

by | Sep 25, 2015 | Personal Tax

My client had rental property as a result of a 1031 exchange in prior years. He has now moved into the home as his primary residence for nearly 10 years. Is the client still on the hook for the taxes that were deferred as a result of a 1031 exchange? Or does it not matter since he has been living in the home for over 10 years?