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montesi
Feb 4, 2009, 07:31 AM
I foreclosed on a property and received a 1099A. The FMV is lower than the Principal owed and box 5 is marked no. How do I file this? Is this considered a cancelation of debt? do I report a gain or loss?
AtlantaTaxExpert
Feb 10, 2009, 10:45 AM
You will probably need to file Form 982 under the Mortgage Forgiveness Debt Relief Act of 2007 for relief from tis debt, but you must wait for the Form 1099-C.

Get professional tax help for this, because you must meet specific criteria to be eligible for tax relief under this procedure.