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Updated almost 3 years ago,
Can I 1099c a tenant from years ago?
Hello all, long time reader and first time poster.
Back in early 2018 I bought my first rental property and the seller wanted to stay on as a tenant. The rent was about $3K per month. He signed a one year lease and paid the first 2 months. On the 3rd month, the tenant stopped paying and communicating. I had a lawyer send an eviction notice/warning. Then a month or so later he left the property overnight. I have the exact dates/records in my e-mail but this is a rough timeline of things. The guy made a LOT of money on the sale of the property to me so he definitely wasn't short on money.
On the way out he absolutely trashed the place, and left a huge mess in the yard which led to me receiving a violation from the city - which I immediately had fixed. Squatters ended up breaking in but eventually left. I ended up selling it around the middle of 2018 for a significant loss - held it for like 6 months in total. Overall a horrible and stressful experience. This was an out of state property and my property manager was a major crook himself.
I made an LLC to purchase/own the property and then dissolved it sometime in late 2018/early 2019.
I never tried to go to small claims court or anything like that since it is out of state and didn't want to deal with the hassle of flying across the country for that. Plus I figured it would be hard to collect anyways.
I recently read it is possible to send a tenant a 1099c for cancellation of debt but I am wondering if this would be possible to do so after so many years, sale of the property and dissolving of the LLC?
Short version:
Can I send a 1099c to a tenant about 4 years after they owe me?