Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Cancellation of Debt—Principal Residence

Reporting a Foreclosure and Canceled Debt (continued)

Case Study (continued)

Frank has qualified principal residence indebtedness. His tax return should include Form 8949 and Schedule D to show the basis of the home disposed of through foreclosure, and Form 982 to exclude the debt cancellation from income.

Click here to review Frank's Form 8949.

Click here to review Frank's Schedule D.

Click here to review Frank's Form 982.

Photo of Frank