Hello,
I think that I already know the answer to what I am about to ask, however throughout my research I have come across many contradictory statements. I need to make sure that after taking bits and pieces from several articles, I have an accurate understanding as to what I need to do.
Our home was surrendered as part of our filing a Chpt. 7 bankruptcy. Following a discharge of debts which was granted in 2012, our mortgage lenders regained possession of our home via a foreclosure auction that took place in Sept. Of 2013.
If I understand correctly, the Chpt. 7 bankruptcy protects us from any potential tax consequences. We received a 1099-A and apparently do not have to file anything with the IRS at present. In the event that they contact me about this matter in the future, I simply need to inform them that the home was discharged through the bankruptcy. I assume they will tell me what I need to provide as far as documentation is concerned.
Could someone confirm these facts for me? It seems odd that I do not have to report anything about the foreclosure right now. On the 1040, do I list any monetary values anywhere? I do not want to appear as if I am failing to report anything. This just seems to easy.
Thank you in advance for your time!
Susan
Read more: Chapter 7 bankruptcy, form 1099-A and the IRS…please confirm?