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View Full Version : Will amount of debt cacelled on 1099c form effect


Cece123
Mar 3, 2010, 01:51 PM
Will amount of debt cancelled on 1099c form effect by tax return? How does thi work? I sold home short sell.

ebaines
Mar 4, 2010, 10:35 AM
Income reported on 1099-C must be reported on your taxes. However, if this loan foirgiveness was because your principal home was foreclosed on, you may qualify for a credit that makes this "income" tax free. See: Home Foreclosure and Debt Cancellation (http://www.irs.gov/newsroom/article/0,,id=174034,00.html) and form 982: http://www.irs.gov/pub/irs-pdf/f982.pdf