ILLMAS Posted March 1, 2017 Report Posted March 1, 2017 TP had lost his job (2015) and the bank forgave part of the loan and interest due for personal residence, TP received a 1099-C and has been insolvent for the past couple of years now. Do I omit the 1099-C and just enter the information on form 982? Or is there something else I need to do? Thanks Quote
Pacun Posted March 2, 2017 Report Posted March 2, 2017 If it is for the primary residence, you don't have to prove insolvency. You just enter that amount and select primary residence. I think you will have to go down on the page and mention that you will reduce the basis. Yes, you just send 982 with the amount entered. 2 Quote
Tax Prep by Deb Posted March 2, 2017 Report Posted March 2, 2017 Wish it was that easy, first of all you better confirm that this is for acquisition debt and not refinance with equity out not used to improve primary residence, otherwise you may have to go the insolvency route. Quote
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