ILLMAS Posted February 10, 2012 Report Share Posted February 10, 2012 I am having one of those days today, but do I need to report a 1099-A for a TP where the balance is higher than the FMV and was his principle residence? And do I use form 982? Can't remember if they are excluded since the value on the house was less then 500K Any help will be greatly appreicated. MAS Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 10, 2012 Report Share Posted February 10, 2012 Report it the same as the sale of his personal residence. Us the amount of loan forgiven as the sale price. If there is a gain, the normal rules for the sale of your personal residence apply. Nothing else needs to be done unless/if a 1099C is issued. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 11, 2012 Report Share Posted February 11, 2012 Report the sale with a non-deductible loss on schedule D. When the 1099-C shows up, then you use form 982 so that the taxpayer doesn't pay taxes on the debt cancelation, just as Jack said. 1 Quote Link to comment Share on other sites More sharing options...
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