Short sale Tax

[bxsvx]

Hi, everyone this is my first time posting to the forums. I currently own a home and I am in pre-foreclosure. The mortgage is 645,000 and I have a buyer to short sale for 351,000. I am worried about the 1099-c which will include my cancelled debt of 294,000. What can I do? The only 2 choices I have heard of are insolvency and bankruptcy. I went to a bankruptcy lawyer and he said insolvency is the same thing. If this is true why does the irs separate the two? I am located in the Bronx, in NYC. If anyone recommends a good accountant/cpa who specializes in short sales please let me know. It is very important. Thanks

 

[bxsvx]

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