1099-c from landlord?
May 11th, 2011 | 
Author: I received a letter from the Irs stating I had unreported income (1099c) from a landlord in 2008. It stated an amount of 2000.00 with a date of 12/31/2008. I did not receive anything from the landlord, but I did live in the house for 3 months until I was evicted for non payment of rent (legally) in the amount of 700.00. However, I was asked to leave the house and left not owing anything and had put over 1000.00 into the home. The landlord will not return my calls or registered letters. Is this Legal? Can anyone just send an erroneous 1099c to lower their own debt? IRS doesn’t seem to have any answers, just saying that I have to prove that I don’t owe it. Why doesn’t the landlord have to prove that I do? By the way, the landlord is a tax attorney.
The landlord asked me to leave because his “manager” stated she had a family member that needed to move in. She said that if I would leave by the end of the month that she would void my contract. I found out a year later that the landlord filed an eviction for one months’ rent and a judgment to that effect was granted. I was ok with moving because my lease was ending in a few months and I wanted to purchase a home. I left the home in immaculate condition. The 1099c states 2000.00 (?) and he doesn’t have to explain this to anyone?
Posted in Landlord Tenant Law
there isn’t much you can do with the 1099 c other than pay it to IRS as requested
if you have substantial documentation you might take the guy to small claims court if you think this is not justified, but as a tax attorney he probably knows all the tricks
If you were evicted for non-payment and the landlord gave up on collecting the unpaid rent the landlord is fully within his rights to cut a 1099-C. Putting money into a rental gets you nothing unless it was agreed to in writing with the landlord.
The best you can do is prove that the proper amount is a lesser amount. The IRS will expect to see your records that validate the amount that you claim.
A debt (like back rent) that a creditor (like your landlord) has written off as uncollectable is considered “taxable income” to the debtor (you). The creditor sends the debtor a 1099C to document this. He must do this if he is going to write off the bad debt on his own taxes.
You didn’t provide enough information to determine whether or not you owed him this rent, so I can’t comment on the specifics of your situation. (And I’m neither a lawyer or an accountant.) But that’s why he sent you the 1099C.