Thank you for asking for additional information. My answer did not cover the circumstances of getting forgiveness because that was not included in your question.
But the Form 982 is used to reduce the attributes in order to seek forgiveness of taxes owed as a result of debt forgiveness. The IRS, under the act, is permitted to forgive taxes.
However, the basis is by adjusting the attributes of the property based on the amount of your liquidity, sometimes called insolvency. The amount of your insolvency IF ANY, determines the adjusted attributes which can in effect result in less taxes owed, zero taxes owed, or no change.
The Schedule D I mentioned was for the condition that you would have a capital gain. Where there is no debt forgiveness because your property sold for sufficient income to pay off your debt. In this circumstances you would not be counting any forgiveness of debt as income, because there would be no debt forgiveness. Debt forgiveness only happens in the property did not bring in enough money to pay off the debt.
From 982 is only used when you have forgiven debt, and you seek tax abatement for the taxes on the forgiven debt. Every 1099-A does not have forgiven debt. Some 1099-A's reflect capital gains. Two different situations.
So tell me this: Was there enough money from the sale of the home, to pay off the debt?