How to process 1099-A
Client received 1099-A from Lender. Box 2 Balance outstanding was $66,818. House was way over appraised on a refinance deal. Box 4 Fair Market Value is $7000.00. Pro Series calculated that my client owes additional taxes on $66,818 and now she owes income tax of $12,000. Client AGI for 2013 is only $12,400, the property was torn down and now is a parking lot. Any suggestions or remedies to get relief for my client.