Foreclosure Schedule
How to complete a schedule D with 1099A? How to show canceled debt on 982?
Need directions on preparing a schedule D and 982 form, to show canceled debt on a home foreclosure. Primary Residence that was refinanced.
A 1099a only reports the foreclosure it does not mean that you had debt canceled. If they let you off the hook for the deficiency they would send you a 1099C.
In many states your primary residence is cover by an anti-deficiency law. This means that the bank can not come after you they can only take the house. If this is the case and it probably is because you did not get a 1099C then you would report on Schedule D the sale price of your house as the balance you owed on the mortgage. The cost would be what you bought it for. If you lived in it as your primary residence for at least two of the past five years then you can subtract $250,000 ($500,000 if you are married) from the profit on the sale of your house.
As you can see this is a little complicated and I would suggest getting some help doing this
Short Sale VS Foreclosure
