How do I include a 1099-C in my tax return?
I received a 1099-C for a short sale. I was insolvent at the time, and the following month I filed bankruptcy. Do I include it as income or use the 982 as insolvent? If I use form 982, should the amount be the amount of the cancelled debt? As it is difficult to tell how insolvent I was my debts were much greater than my assets.