My question involves a mortgage in the state of: VA
So I did a short sale last year. I had a legal dispute with the bank who said I still owed the deficiency. Eventually they decided not forgive the debt. Now I received both a 1099-C dated the settlement date and a 1099-A dated 12/31/09 for like a thousand more than the 1099-C amount (probably adding interest) I believe I shouldn't have received both of these forms. Besides, this was not a foreclosure, the bank never took possession of the home. So why would I have received a 1099-A?
Also, when I enter these into Turbotax, Turbotax determins my forgiven debt to be the 1099-C plus the 1099-A amount. I believe it should only be the 1099-C amount. Is this correct and if so, how should I enter it in the canceled debt worksheet. If this is all incorrect, how do I correct this?