1099-c for settlement of 2nd mortgage and insolvent with a home office
We recieved a 1099-c for 54k (which is a portion of my HELOC with balloon that we settled for a fraction of the cost because the house we originally purchased in 2006 for 432k is worth 300k). I have had a home business and taken depreciations each year since 2006 for 280 square feet of 2400. With the exception of the home office, the cancellation of debt would easily be excluded from out income, but with the home office both TaxCut and H&R Block online tell me to get lost. Any suggestions of the paperwork I need to fill out?