IRAs Owners of self-directed IRAs must be very careful with the IRAs’ investments, as this case shows. Two individuals formed a new firm and directed their IRAs to buy all of the stock. The company that the IRAs owned then purchased a business for cash and a note that was secured by the personal guaranties
Bankruptcy Can a lender collect on a debt after issuing Form 1099-C to the defaulter? A bankruptcy court says no. A couple failed to pay their home mortgage, and the bank foreclosed, issuing them a 1099-C showing debt discharge income of $5,000, the excess of the mortgage balance over what the house was sold for.