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Even if the debt was forgiven or excused involuntarily, as through a foreclosure, you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
The taxability can be found on the following website with examples:
Hope this helps.
Sorry - another question popped up on the system - system error.
If you need samples, I can defer this to another expert who may have a sample?
We do not have samples on the site, unfortunately. I will opt out an transfer you to another expert, who may have some sample of a completed document. Thank you for your patience.
This website link is to a 2016, most up to date, form 3115 line by line with sample information, educational, professional seminar. It belongs to the California Society of Enrolled Agents' 2016 Super Seminar. I don't have copy right. Therefore, I cannot download and send you a copy.
I don't think the law preventing me from sharing the information with you. This is a good, informative source for your need.
Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP