We received a 1099-a form today. The difference between balance and FMV is 37,000. We fall way below the $2 mil mentioned in the Home Mortgage Forgiveness Act of 2007. I am confused after reading all the publications, do we have to pay taxes on this amount, or will the Act of 2007 help us. Will I be able to fill out Form 982 so it will not send us into another tax bracket?
Thank you for your help!
