We sold our home last year in short sale. Today we've received 1099-C. I am not sure about the numbers they reported. Our loan/mortgage amount was about $205,000. House was sold for $168,000. Form 1099-C says amount of debt cancelled $12,890 and fair market value $149,100.
Is amount of debt cancelled supposed to be 205,000-168,000=37,000 ? Or that is not that simple?