From William Perez,
Your Guide to Tax Planning: U.S..
FREE Newsletter. Sign Up Now!

Here's a collection of resources from the Internal Revenue Service concerning canceled debts and the Mortgage Forgiveness Debt Relief Act.

FAQ about the Mortgage Forgiveness Debt Relief Act
The IRS provides an overview of this new tax law and explains how to report various types of situations, such as foreclosures and restructured mortgages.

Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (pdf)
Form 982 is used to indicate you qualify to exclude your canceled debts. The link goes to a PDF file containing both the form and the instructions (four pages total).

Questions and Answers on Home Foreclosure and Debt Cancellation
The IRS provides more guidance for figuring the exclusion amounts and step-by-step instructions for reporting foreclosures.

Exclusion from Income for Certain Cancellation of Debt on Principal Residence
Another overview of the exclusion for mortgage debt, covering what debt qualifies to be excluded, what's considered a primary residence, and how to split out acquisition debt from home equity debt using the ordering rule.

Bankruptcy Tax Guide, Publication 908
In-depth discussion of the insolvency and bankruptcy exclusions for canceled debts.