First Foreclosure

[SueBaby]

Got a 1099- C of $52,000 of debt canceled with home mortgage loan and bankruptcy and fair market of house is $59,000.

My question does all of the 52,000 go on line 21 as income? Do I use a 982 and what do I put on it? Have plenty 1099-Cs but not a foreclosure before. He did not get a 1099-A.

Never had a foreclosure before but better get practice because I am sure they are many behind this one.

[SueBaby]

Got a 1099- C of $52,000 of debt canceled with home mortgage loan and bankruptcy and fair market of house is $59,000.

My question does all of the 52,000 go on line 21 as income? Do I use a 982 and what do I put on it? Have plenty 1099-Cs but not a foreclosure before. He did not get a 1099-A.

Never had a foreclosure before but better get practice because I am sure they are many behind this one.

I went to the 1099-C and put it from there on form 982 line 2 for insolvent and it did not go as income at all. Am I doing this right???? I am THANKS

[Gretel]

If client is insolvent through bankruptcy there will no income from canceled debt. If Sec.125 exclusion applies because it was main residence there will no gain from sale of house.

[BOB W]

If client is insolvent through bankruptcy there will no income from canceled debt. If Sec.125 exclusion applies because it was main residence there will no gain from sale of house.

Insolvency without filing bankrupsy is OK also.