I received a 1009-a on a 2nd home that was foreclosed in Florida. What do I do with the 1099-a? Is this going to count as income which will reduce my tax returns? Also box 2 was 111900 and box 4 was 18000. Thank you.

It HAS to be included on your tax perperation. THe feds know you got one... failure to report it runs a high risk of it being rejected and an audit being done on your return(s).

OK thanks. I planned on reporting it but I was just asking the question because in another post the agent said that the 982 has to be prepared manually and not electronically. In doing that how will that affect the numbers on the returns.

I don't have an answer to that question... I have an accountant handle my tax perperations every year. Just wanted to stress its not something you could brush off as unimportant without consequences.

But have patience... someone that does will answer soon enough.

In almost all cases the 1099-A form is used to provide you information about your foreclosed house, but the information reported on it usually does NOT need to be included in your tax return. Look at the numbers in box 2 (principal outstanding) and box 4 (fair market value of the property). Since box 4 is greater than box 2, in effect you sold your house to the bank for less than its market value, and you do not have any taxable income from this transaction. If Box 4 had been less than box 2, then the bank would have foregiven you some amount of your loan, and the difference would have to be reported as income. Also- if this was you principal residence you should review IRS Pub 523 to figure any taxable gain that you may be required to report.