I received a 1099-C from a timeshare that was canceled?
I got 2 1099-C forms from a timeshare company that I was unable to pay anymore during 2011. I have been unable to find much info in regards to the 1099-C online. One thing that I did find said that when you go to enter it for taxes that if you take the canceled debt and subtract the Fair Market Value, what you have left is the taxable income to add on. In my case the canceled debt is around $3K and the FMV is around $5K. If you do the math then you end up with -$2K, since you can't enter a negative amount, you would enter $0. This makes since to me because the timeshare company is going to turn around and resell the property for far more than I owe on it, plus they still have the money that I paid as a down payment and my monthly payments for the past few years.