Property purchased 2/28/2003 - fell ill - bankruptcy discharged in '09. NJ was backlogged for foreclosures/deeds in lieu & new townhouse-related expenses started to pile up after the discharge, advised to rent property to pay expenses until the bank could catch up. Rented it from 2009-2011 - bank was bought & repurchased several times - contacted by new bank last year w/ $20K incentive to short sale - got advice from several attorneys - all said I shouldnt get 1099C - bank also assured me - now I have $141K 1099C anyway. I always reported the income & expenses while a rental but should have exceptions based on insolvency at time of discharge, bankruptcy & it was my personal residence for more than 2 yrs in the last 5 yrs - if I enter it it looks like I have a taxable gain of over $104K!The property earned rental income from 2007 to 2011 and that income was always claimed in tax filings, the bankruptcy proceedings - in fact the only income at the time of my bankruptcy filing was the rental income from the property which is documented in the bankruptcy. I was advised by my bankruptcy attorney to rent out the property after the discharge because I was now liable for the HOA fees, utilities, insurance and taxes until the foreclosure process was completed which could take years and I could personally rack up tens of thousands of dollars in liens and potential liability if I left the property vacant and unprotected. I'm in the process of doing my taxes and have been advised to include the incentive as a part of the sale price. Property upside down over $150K so no equity. I've filed my own taxes since 2003 using Turbo Tax - thanks for your feedback and any referrals you can offer.