You'll need to sign in or create an account to connect with an expert.
It depends. It is unfortunate that the mortgage forgiveness provision was allowed to expire. So, in order to reduce the amount of reportable income from the cancellation of debt on the house, it will be necessary to calculate insolvency. But that does not require you to file separate returns, but you can calculate your insolvency separately. Those calculations are on a separate worksheet which you basically fill out manually.
Here is the most recent worksheet currently available on the IRS website (last year's version). You'll want to wait for this year's form, but this will give you a good idea: https://taxmap.irs.gov/taxmap/pubs/p4681-002.htm#en_us_publink100052679
The IRS may ask for this form. You would need to mail it in if they do.
It depends. It is unfortunate that the mortgage forgiveness provision was allowed to expire. So, in order to reduce the amount of reportable income from the cancellation of debt on the house, it will be necessary to calculate insolvency. But that does not require you to file separate returns, but you can calculate your insolvency separately. Those calculations are on a separate worksheet which you basically fill out manually.
Here is the most recent worksheet currently available on the IRS website (last year's version). You'll want to wait for this year's form, but this will give you a good idea: https://taxmap.irs.gov/taxmap/pubs/p4681-002.htm#en_us_publink100052679
The IRS may ask for this form. You would need to mail it in if they do.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ksilver105
Level 2
Atari88
New Member
Linda C2
Level 2
solomon_g
Level 1
katik2123
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.