Have Tax Questions? Ask a Tax Expert for Answers ASAP
Yes it was my primary residence.
To request that your forgiveness of debt on your primary home be excluded from income you need to use Form 982 with your tax return. Do not include the forgiveness amount on your 1040 form.
If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.
The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b,if applicable,on Form 982.
Here ia a link to teh 982 Form that you can fill in and print or just print and enter by hand your indformation,
I sincerely XXXXX XXXXX will give you the information you need,
1.) The link did not show up could you resend the link.
2.) Does it matter that the fair market vale for a $895,00 home is listed at only $ 100?
TSince there is no way the fair market value is only $ 100
3) What verbadge do I need to say to IRS agent to get a second extension so as to get futher professional tax help, since I have realized that my efforts to do so have not prevailed.
You were much more helpfull than the other expert.
Thank you in advance.
Sorry about the link (and the spelling)
The fair market value could be a typo, request a correction from the issuer of the 1099.
As far as an additional extension, you have until October 15th 2010 if you filed for an extension.
What you need to know is that if this was your personal residence you still have the $250000 exclusion if you lived in home for 2 out of the last 5 years that you owned it ($500,000 if you are married). This means that the Form 982 will take over for any amount of gain after your regular exclusion.
If you need tax help, any of the tax offices like H & R Block should be able to help you (for a price). There were so many of these for this past tax year that the people still working in the tax offices now should be well versed in how to handle this for you. Usually, only tax preparers that have a number of years experience are around after April 15th in the tax prep offices due to the complexity of the items you see after April 15th. Even though you have an extension till Oct 15th don't wait. There is nothing you could say after that date that would get you any more time.