Hey, this is Jairus Jill Cortina. Thank you for joining us in our QA session on the questions homeowners have when facing foreclosure. This question is related to taxes and deficiencies. So, what is Form 982 with the IRS? To provide some context before I ask Joe the question, I want to mention that he's been feeling a little sick but seems to be better now. Before we proceed with the full question, if you're looking for more information, you can find it in the Mortgage Forgiveness Act of 2007. Specifically, look for Form 982, which will provide the same information that Joe is going to explain. Basically, if your debt is related to your principal residence and you meet the qualification of having lived in the home for two of the last five years (not necessarily consecutively), you won't have taxable income on the debt. Now, should we discuss insolvency? Form 982 is the form you need when dealing with insolvency. So, there are two sides to this coin: being a primary resident and living in the home for two out of the last five years, and receiving a 1099 form from your lender to write off the presumed owed taxes to the IRS. However, this is mainly applicable to homeowners who are insolvent, meaning they are facing financial difficulties regarding their investment. The Mortgage Forgiveness Act protects primary residents, but investors need to do a balance sheet to calculate how much they've invested and lost. Form 982 determines if you owe any taxes. So, if you're a real estate investor and facing underwater properties, you can still engage in short sales and be covered because you're likely insolvent. Insolvency means you owe more than what you have. Hopefully, this answers your questions. If you want more information, search...
Award-winning PDF software
Irs 982 instructions 2025 Form: What You Should Know
These documents usually take several months to prepare and are not intended to replace your own tax return or the preparation of any tax return for which you may be liable. The IRS assumes no responsibility or liability for the accuracy or currency of information in any release, and no representation is made as to its comprehensiveness or accuracy. This is a PDF-only document.
online solutions help you to manage your record administration along with raise the efficiency of the workflows. Stick to the fast guide to do Form 982, steer clear of blunders along with furnish it in a timely manner:
How to complete any Form 982 online: - On the site with all the document, click on Begin immediately along with complete for the editor.
- Use your indications to submit established track record areas.
- Add your own info and speak to data.
- Make sure that you enter correct details and numbers throughout suitable areas.
- Very carefully confirm the content of the form as well as grammar along with punctuational.
- Navigate to Support area when you have questions or perhaps handle our assistance team.
- Place an electronic digital unique in your Form 982 by using Sign Device.
- After the form is fully gone, media Completed.
- Deliver the particular prepared document by way of electronic mail or facsimile, art print it out or perhaps reduce the gadget.
PDF editor permits you to help make changes to your Form 982 from the internet connected gadget, personalize it based on your requirements, indicator this in electronic format and also disperse differently.
Video instructions and help with filling out and completing Irs Form 982 Instructions 2025
