Enter the 1099-C on TurboTax as it is on the paper form. Box 2 is amount of debt discharged and is the amount taxable unless it otherwise qualifies for
an exclusion or an exception. Some exceptions are regarding mortgage debt,
bankruptcy and insolvency. The difference of the debt and the sale is irrelevant.
Here's how to get back to your 1099-C:
1.
Open (continue) your return.
2.
In the TurboTax program, search for 1099-C or 1099C (lower-case
works also) and then click the "Jump to" link in the search results.
3.
Select the type of cancelled debt (main home or
other) and then click Continue.
4.
Follow the onscreen instructions to enter
information from your 1099-C.
