Ok- hate tex season. Anyway my house was foreclosed on and I got a 1099 a form. My fmv is less than the total outstanding debt. I have called everyone and am not getting answer on what to claim. I have looked at the IRS website and somebody please tell me if I am understanding this.
As I have only received a 1099 a form I do not have to claim anything as of yet, I will only have to claim something if I receive a 1099 c for a cancellation of the debt.
And then because I am considered insolvent- my debt is more than my assests, I actually won't owe anything anyway.?
Please help I am going crazy!!
Oh and just in case it matters this was not my primary residence, I rented it out?

Contact a tax professional. You will need to file a form (I cannot remember the Form number) to request cancellation of the perceived income from the cancelled outstanding debt.

Do NOT wait for the Form 1099-C, because that form may get lost when it sent to you, but NOT to the IRS.