Hello:

Just found this site and would LOVE some help.

Got two 1099-A's. One for the primary loan, one for the second loan we HAD to agree to when we got the loan. Here are the details:

Form 1
Box 1: 06-10-11
Box 2: 186, 738 (Balance)
Box 4: 194, 985 (FMV)
Box 5: "X" in the box

Form 2
Box 1: 06-10-11
Box 2: 25,000 (Balance)
Box 4: 194, 985 (FMV)
Box 5: "X" in the box

Give it to me straight... I can take it... I think. Thank you for any help.

By the way, this loan was in California.

Loan foregiveness may be taxable to you, but not if you were insolvent, or had declared bankruptcy, or if the property was your primary residence. Read IRS pub 4681: http://www.irs.gov/pub/irs-pdf/p4681.pdf especially page 8. You may have to file form 982 with your return to claim the exemption.

Further piece of advice: get professional tax help on this.

Most laymen do not know enough to properly file Form 982, and it is beyond the grasp of some of the tax professional out there as well.