Forgiveness for cancellation of mortgage indebtedness

[Jack the Tax Lady]

So, what has been decided?

Where and how do we report the 1099C's for cancellation of debt on the many foreclosures from last year?

[Bees Knees]

You aren't going to get any 1099-Cs. The new law says you get to exclude up to $2 million of debt forgiveness.

TTB just posted coverage of the new law at http://www.thetaxbook.com/updates_view.asp?ID=96