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Entering form 1099A for a partnership return 1065

Level 3

Good day, Can anyone help with an entry of form 1099A in a partnership return. The client started a business and abandoned in the same year. They bought a truck and unfortunately it was repossessed receiving form 1099A.

FMV showing $15000

Balance of loan $49859, and they originally purchased vehicle for $64,000.

How do I treat this entry on the form 1065.

Thank you,


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1 Comment 1
Level 15

A 1099-A is treated as a sale.

If it is recourse debt, the sale price is the FMV.

If it is non-recourse debt, the sale price is balance of the loan.

There could be a 1099-C in the future for cancellation of debt.

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