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How do I report a Form 1099-A for my foreclosed home?
Treat a foreclosure as a sale of the property. Report the sale on Schedule D. The sales date would be the date the foreclosure became final (reported on Form 1099-A, box 1).
What you'll report as the amount realized on the sale depends on which of these applies:
You compute gain or loss in the usual way. This is the sales price minus your adjusted basis in the property. If there's a loss on the sale, you can't deduct the loss, and it can't be used to offset other income. This is due to the fact that your home is considered personal-use property. If you have a gain on the sale, you might be able to exclude some or all of the gain.