Have a Tax Question? Ask a Tax Expert
Hi. My name is ***** ***** I will be happy to help you.
1099A is NOT cancellation of debt notice. It is Acquisition or Abandonment of property, basically change of ownership notice (from you to the bank). Most of the time you do not have to worry about 1099A in case of foreclosure of the primary residence. It is suppose to help you to calculate your capital gains/losses from the sale/disposition of the property.
To report cancellation of debt, the banks use different form: 1099C. The principal residence debt forgiveness act was only extended until end of 2014. If the bank cancel your debt in 2016 or 2017, you may need to report it as income, unless you can claim insolvency.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?
I do not know where are you getting your information from but this is the latest and only IRS update:
and here's link to the congress website:
It had been introduced but have not passed as of today.
If you property is foreclosed, you will most likely not have any capital gains, you will have capital losses. Losses from sale of principal residence are not deductible, no need to report anything.