Non-Jeep related question about taxes

[brokenujoint]

I did a shortsale on my Townhome last June and it falls under the Mortgage Forgiveness Debt Relief Act which expires at the end of this month. I have a 1099 that the IRS sent me. It's my understanding that a CPA can waive the amoujnt on this 1099. The amount is the difference from what I bought the home for and what I sold it for. 130,000 dollars. When you take a lose, it shows as taxable income. My question is: has anyone gone through this process and or how do I go about doing this? I went to an H&R Block against my better judgement and they were stupdified. They had no idea about the Relief Act as I figured. I just walked out. Anyone have a good tax person I could even be counciled by? Any help is appreciated.
Kevin

[curtis]

This might help

http://www.irs.gov/Individuals/The-M...-Cancellation-

[RAT]

Freaking IRS rules. They can't even interpret them clearly. Hope this works out for you Kevin.

[brokenujoint]

I tried reading through that and got a HEADACHE. Lawyer mumbo jumbo. THX though.. I'm just gonna go out tomorrow and head hunt for a tax consultant and see what the deal is. Im sure it's simple, just hope it isnt a couple hundred bucks for the "professional" help.

[curtis]

Go to a real CPA. The way I read it is, you just file the one form.

[vwtipeii]

I work with several CPA's I can refer to you. I also have peers in SD who can recommend one there if you don't want a LA based CPA. Just let me know.

Brett

[brokenujoint]

Thanks vwtipeii. Im gonna talk to the accountant at the escrow company that did the short sale for me. But if you have a CPA in SD then that would be a great backup if this lady cant help me directly. I super appreciate it!

[Materdaddy]

You simply need to fill out a 982 to be filed with your taxes. Per the Debt Relief Act that form filed with your taxes basically relieves you of the taxable portion. Note that it maxes out at 250k (which you said 130k was your forgiven debt, so you shouldn't worry). Also, if you stand to make money on capital gains, the amount forgiven by this act is subtracted from the first 250k of non-taxable capital gains taxes. Go see a real CPA not H&R. Good luck!

http://www.irs.gov/pub/irs-pdf/f982.pdf