Joint Owners of condo receive 1099-A but no 1099-C
I have a father who purchased a condo in IL with his son for his son to live in. They purchased the condo in 2006 as Joint Tenants w/Right of Survivorship...this was not a "Homestead" property for the father. Both were listed on the title & the mortgage. The son moved out of state & let the property go in default about 4 yrs or so ago. The condo went through foreclosure & a judicial sale was completed on 12/12/2016. The father received a 1099-A with Box 2 showing $282,102.33 for outstanding principal, Box 4 showing FMV of $250,000 & Box 5 is checked as personally liable. The father did not receive a 1099-C from the lender. He said the son received the same form he did & that the son told him that there was some tax liability from the foreclosure & that he assumed it entirely on his tax return. If the entire tax liability was assumed by the son on his 2016 tax return, do I need to included anything on the father's 2016 tax return? Will the IRS be looking for some sort of entry on the father's return & if so, how do I report it on the return without creating ordinary income on his return since the son claimed all the tax liability? I don't want the father to pay tax on the assumed canceled debt created from the foreclosure that the son claimed on his return & I don't want the IRS coming after the father because nothing was reported on his tax return. Any help would be greatly appreciated!