Form 982 refresher

[ILLMAS]

TP received two 1099-C, one was for a foreclosure on a rental property and the other one was for deceased spouse debt and because of the foreclosure, they now have a capital gain on the disposal of the property.  I know the foreclosed property is treated as a sale (Form 1099-A was not issued, but sales closing statement was provided),  but can the gain be excluded on form 982?   TP is insolvent and not in bankruptcy. 

 

 

[Terry D EA]

ILLMAS, check out pub 4681. I put a link here if you want to use it. Seems that page 4 & 6 may be of help to you. 

2021 Publication 4681 (irs.gov)

[Lion EA]

https://brasstax.com/ for free COD worksheets (practice aids) as well as reasonably priced self-study and webinars on your topic. Lisa Ihm and Brass Tax Presentations do a lot on cancellation of debt.

[ILLMAS]

16 minutes ago, Terry D EA said:

ILLMAS, check out pub 4681. I put a link here if you want to use it. Seems that page 4 & 6 may be of help to you. 

2021 Publication 4681 (irs.gov)

Thank you.

[Lee B]

Pub 4681 is fairly well written and has some detailed examples. It's always been my go to reference for these issues.