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Joint TP sold their home for $200K, owed bank $330K and received a 1099-C for $130K, can they claim the reduction of tax attributes (Form 982) if they are not in bankruptcy or insolvent?

 

Thanks

 

MAS

Posted

Joint TP sold their home for $200K, owed bank $330K and received a 1099-C for $130K, can they claim the reduction of tax attributes (Form 982) if they are not in bankruptcy or insolvent?

 

Thanks

 

MAS

If the home was their primary residence, yes.

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