Now that the mortgage debt forgiveness act has passed, do I still need to report my forgiven debt when I file?

I'm thinking I do have to report it, but I'm not sure how. I did get a 1099-C listing the amount of forgiven debt.

Now that the mortgage debt forgiveness act has passed, do I still need to report my forgiven debt when I file?
Yes, you need to report it.





However, the IRS hasn't updated the form 982 yet to reflect the new option.





I guess you could attach a letter to the form explaining that you are eligible (are you?) for the debt forgiveness and that you are electing to reduce the basis in your property by the 1099-C amount rather than elect insolvency (which you may or may not qualify for). In that case, I'd also report the "sale" of the property at the foreclosure amount - the cancelled debt amount on schedule D and state the election there too.
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Reply:sure do