I have received a 1099c form for ghost income on a delinquent credit card which was cancelled. I am not on the title of the house where we l...

Question

I have received a 1099c form for ghost income on a delinquent credit card which was cancelled. I am not on the title of the house where we live. My wife and her uncle have a 50% share in the home each. Must I claim the home as an asset when figuring on a form 982? Also can I file a married filing separately on my income tax? We had filed jointly in 2012.

Answer

You need to consult a tax advisor. Go to a CPA or an independent tax specialist. Many storefront tax preparers are not familiar enough with the nuances of cancellation of debt and the Form 982.

That being said, if your name is not on the title to real estate, it is generally not considered to be an asset of yours. The answer is too complex to provide on an advice forum. Please protect yourself and see a tax specialist.

Answer

I agree with Ms. Coleman. The form 982 and your home have nothing to do with the 1099c. Speak to your tax preparer.

Answer

I am not a tax lawyer and this is not tax advice. I echo the comments of my colleagues - you need to see a real CPA and one who is familiar with form 982.

You can use form 982 and the insolvency test to exclude the 1099c from your income. To claim insolvency and exclude all of the income, your debts must outweigh your assets by at least the forgiven amount.

In using the form, you add up all of your debts and all of your assets. If you are not on the deed to the home then it is not your asset. However, you and your wife should not file taxes jointly. If you file jointly, then the house might be considered an asset. I don't know for certain and that is why you need to talk to a real cpa about this.