The way all the pamphlets read, I am elligable for the insolvancy exclusion to exclude all that was forgiven. I am in the process of filling out form 982 and am stuck on line 10a on reducing cost basis. The only real property I own is an old vehicle and (if it applies) the amount of money in my works 401K (I live in my parent's home and they own everything else). If you take all my libailities and subtract the above mentioned two things, my liabilities still exceed the valu e of the truck and the 401 K. Does this mean I can put zero on my cost basis since that is a negative number?