How do I report the debt forgiven on my residence due to foreclosure, repossession, abandonment, or because of a loan modification or short sale?

 

ITA home

This interview will help you determine how to report the debt forgiven on your residence due to foreclosure, repossession, abandonment, or because of a loan modification or short sale.

Information you'll need

Note: This interview isn't designed to address the cancellation of debt that applies to a joint liability when debt was canceled in bankruptcy and only one individual filed for bankruptcy. Please refer to Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments (for Individuals).

The tool is designed for taxpayers who were U.S. citizens or resident aliens for the entire tax year for which they're inquiring. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. For information about nonresidents or dual-status aliens, please see International taxpayers.


Disclaimer

Conclusions are based on information provided by you in response to the questions you answered. Answers do not constitute written advice in response to a specific written request of the taxpayer within the meaning of section 6404(f) of the Internal Revenue Code.


Estimated completion time: 10 minutes

Please note: After 30 minutes of inactivity, you'll be forced to start over.

Caution: Using the "Back" button within the ITA tool could cause an application error.

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