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Category: Bankruptcy Law
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My husband and I are filling out a 982 based on a 1099-a. We

Customer Question

My husband and I are filling out a 982 based on a 1099-a. We filed bankruptcy in 2010 which included our only home, credit card debt, and medical/dental bills. Total of home on form 1099-a 305,9000. Publication 4681 says we must reduce our
tax attributes on part 2 of form 982. What are tax attributes and how to we fill out part 2?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  insearchoftheanswer replied 6 years ago.
Good evening. You actually do not need to file the Form 982 based on a Form 982.

The 1099-A is simply an informational notice given when you have walked away from a property secured by debt. It is not necessary to include any amounts on the 1099-A on your tax return. It has not been officially forgiven, so it's not income to you yet. Only when you get issued a 1099-C would it indicate the debt had been forgiven and then it would be forgiveness of intebtedness resulting income. BotXXXXX XXXXXne, you need do nothing with the amounts on 1099-A.



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Customer: replied 6 years ago.
I am confused as pub.4681 states the following:

How to report the bankruptcy exclusion. To show that your debt was canceled in a bankruptcy case and is excluded from income, attach Form 982 to your federal income tax return and check the box on line 1a. Lines 1b through 1f do not apply to a cancellation that occurs in a title 11 bankruptcy case. Enter the total amount of debt canceled in your title 11 bankruptcy case on line 2. You must also reduce your tax attributes in Part II of Form 982 as explained under Reduction of Tax Attributes, later.
Expert:  insearchoftheanswer replied 6 years ago.
I will opt out and another expert can help you from here.
Customer: replied 6 years ago.
Relist: Other.
Our Expert opted out of our question.