What are the tax implications of filing a 1099-C and showing insolvency (if any)? Thank you.
I had a cancellation of debt on an old credit card. When filling out the insolvent work sheet for the time right before the debt the cancelled, I had around $12,000.00 more liabilities vs. assets. What the are implications if I claim the amout on the 1099-C and show insolvency? Thank you!