[cswilson]

My son got divorced last year... his ex stayed in the house.. he paid his half of the house payment and found out that she was letting them foreclose... She has now declared bankruptcy . She just sent him a 1099 a form states that the property was 76,000 and appraised for 40,000 and that there is a 36,000 balance. He did one of those h & r block quick loans and is waiting on his w-2 to actually file... he didn't know about the 1099a... when he goes to actually file and turns in this form... is it going to take his refund??

Thank you!:)

[AtlantaTaxExpert]

It should not. There is a process by which the imputed income is forgiven by the IRS if the foreclosure mets certain conditions, and it appears that your son's circumstances qualify.

The H&R Block people should know how to handle this. If not, he need to find a tax pro who does.