Have a Tax Question? Ask a Tax Expert
Was this for a personal primary residence?
Did you use this home as a primary residence?
The Mortgage Forgiveness Debt Relief Act allows up to $2 million of canceled debt to be excluded from taxable income resulting from the short-sale or foreclosure of a primary residence. You will claim the excluded COD income on Form 982 with your tax return. Please let me know if you have further questions.