foreclosure form 982
Can I use a 982 Form for a 1099-A?
I just received a Form 1099-A for a foreclosed home in Jan 2008, I have not received a Form 1099-C, the amount owed at the time of foreclosure was greater than the FMV (the difference is something like $62000). Can I use Form 982 to discharge the gain from the foreclosure in my 2008 taxes? Is this what the Mortgage Forgiveness Debt Relief Act of 2007 is supposed to be for?
I’ve been trying to find some helpful information in the IRS website, but there’s not too much about form 1099-A, there’s more about 1099-C’s
Any help will be appreciated…Thanks
The 982 is ONLY for the 1099-C.
The 1099-A is for the “sale” of your home.
See irs pub 4681–20 pages and it covers this.
If your box 5, liable says yes, you will someday get a 1099-C for $62,000 and it could be this year *or* next year. Use the FMV as the sales price on schedul D if it’s less than the balance due.
If it says no, you sold the house back to bank for the balance due and use that as your sales price on schedule D. (And you’d never get a 1099-C in this case.)
