I read a response that stated "With a deed in lieu of foreclosure, any forgiven loan amount that is more than the value of the property will be considered taxable income and you should expect to receive a form 1099-C for cancellation of debt"
We have the opposite, the value of the property is MORE than the foreclosure. It does not seem using the reasons on form 982 are applicable to us. I've been told by numerous people that there should be no taxes owed since we had no income but TT is calculating that we owe taxes on the entire foreclosed amount. At this point I'm not sure what to do.
