1099-A after bankruptcy discharge

Author Message
harleygirl

Guest







Post Posted: Tue Feb 09, 2010 1:33 pm    Post subject: 1099-A after bankruptcy discharge
Like
Dislike

Had chapter 7 discharge in Oct 2008. Primary mortgage was included, home surrendered during bankruptcy, foreclosure completed after BK discharge in Mar 2009. Received 1099-A from Citi with Box 2 (principal balance) higher than Box 4 (FMV) and Box 5 checked liable.

Do I have to file Form 982 and if so what do I have to fill out and do I have to file any other form or schedule?

IRS can't answer - is confusing the heck out of me. Just want to file my taxes and get it right.
Can someone shed some light?
Thanks!

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile jenkin7
jenkin7




Joined: 04 Jun 2007

Posts: 4537
Location: Hawaii
728.42 Dollars($)
Post Posted: Thu Feb 11, 2010 10:23 pm    Post subject:
Like
Dislike

Hi harleygirl,

The discharged debt is considered as your taxable income and it has to be reported to the IRS. However, under certain conditions, the discharged debt can be excluded from your gross income. If you surrendered the home in bankruptcy and the debt was discharged, you are not liable to repay the mortgage and you can exclude the discharged debt from your gross income. You will have to file a form 982 to report the exclusion. After filling out the form you need to attach it to your tax return.

To know more about Mortgage Forgiveness Debt Relief Act and discharge of debt, you can refer to the following page:
http://www.irs.gov/individuals/article/0,,id=179414,00.html
All times are GMT - 7 Hours
Page 1 of 1

 

Page loaded in 0.439 seconds.