We received a 1099-C in 2017 for cancellation of debt for a Rental Property that was sold in a Short Sale two years ago. How do I enter the debt amount for this on TT?
I read the information on taxes and short sales and it appears we need to enter the debt forgiveness amount as income since the property was a rental and not our main home. To do this on Turbo Tax, we select second home in that Miscellaneous Income thread for 1099-C, since rental does not allow us to enter the debt amount? True?
However, the property sold in the short sale was owned only by my wife who is retired and whose only personal income last year was from social security. (She purchased it before we were married.) Would it be better to file individually rather than jointly?