1099 A issue

[Ed Taxes]

Cleint purchased personal residence in 2000 for 200,000. She lost the home in 2010 and recieved a 1099A. Line 2 on the 1099a, balance of principal outstanding is 500,000. line 4, FMV is 400,000. line 5, she was personally liable for debt. How to handle on tax return??

[Gary2]

Foreclosure, repossession, or abandonment?

Assuming foreclosure, she has $200K of gross profit, probably excluded under the rules for sale of personal residence. The remaining $100K should wait until the 1099-C arrives.