Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Are you negotiating for a deed-in-lieu of foreclosure with the same lender whose loan obligation was discharged in your Bankruptcy.
The date that ownership is transferred is the date the deed is signed over to and accepted by the bank. However, if the bank issues a 1099-C debt forgiveness form, you will not have to include the forgiven amount as taxable income because the debt was discharged in a Bankruptcy.
If the bank does issue a 1099-C form, you would simply include IRS form 982 when you file your taxes for the year the 1099-C is issued: