Legal Question in Tax Law in California

1099-A - better on a rental or primary home?

FACTS on both houses :

( I am insolvent )

1. (House A) - foreclosed On . ( First and second loan , both non re-course loans) I am in the state of California. Lived in for one year, rented out then foreclosed.

A.I had a first mortgage and a second mortgage . I got a 1099-a for the primary .

B.I did not receive a 1099 from the second lender (non recourse purchase money). Will they send me one later? The house Foreclosed but the fmv was not enough to cover the second loan. Since its non recourse loan will send me a 1099? How do I report the second mortgage of $99,000, do I still list it as a debt?

Here is the rental and mortgage int paid as well as the 1099-A info : $8000 in rental income paid about $9000 in mortgage .FMV is 299,999 paid 499,999.

House B - Paid about $30,000 in interest. Had rental income from family member of about $ 3700(do I have to claim this?). I still live in this property .

I am thinking that if I choose house B to be my primary on taxes I can list house A as a rental and not worry about the $100,000 of forgiven debt because I am insolvent.( if I am ). Then I can claim the interest I paid and I can all claim the loss from the rental property?

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