Thanks very much for this info. Now it makes me wonder if my 2011 tax return included this provision. I had gotten divorced and ex got one house and I got the other one. Ex didn’t pay a dime of the mortgage for his house (it was mortgaged in my name only). I had to take him back to court and got that house legally deeded back to me so I could sell it. Had to sell at a $40k loss. I do remember getting a 1099-C from the mortgage company that year. Now I’ll have to go back and check if I paid any taxes on it. It’s been long enough I’m not sure I’d be entitled to recover any money if I did pay taxes on it.
