OK, a little complicated, but...................First, there was a short sale on an investment (rental) condo in Novemeber of 2012.The lender issued a 1099c showing that there was a forgiveness of $97,000.00.The recourse box was, properly, checked yes.After running the insolvency worksheet, the individual is about $75,000.00 insolvent, leaving $22,000.00 of forgiveness as potentially taxable.Can this balance of $22,000.00 be discharged on (the same)Form 982 as a Discharge of Real Property Business Indebtedness?In other words, claim both the insolvency and the Discharge of Real Property Business Indebtedness on the same 982? It does say to check "boxes(s)" - plural in the first section of the form.
In other words, claim both the insolvency and the Discharge of Real Property Business Indebtedness on the same 982? Yes. And I believe you're doing it in the right order. You claim the insolvency exclusion first, then the Qualified Real Property exclusion.--Peter
Thank you Peter.Anybody else want to jump in, please feel free.gsgreen
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