You need to meet with an experienced tax-preparer ASAP. Be sure to take your bankruptcy petition and the discharge notice with you.
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You are correct ... you will not have to pay taxes on it. Simply file a Form 982 with your tax return and check Box 1a which says the debt was discharged in BK.
This really bothers me that it's a Chapter 11.
First, the order confirming the plan and/or plan may include language that alters whatever you think the law is.
Second, there are many tax consequences that arise from a Chapter 11 which your bk attorney should have told you about and some that he should have deferred to a tax attorney.
Finally, debts incurred post petition are generally not discharged. So if after you filed for bankruptcy, these causes of action arose, then there may not necessarily be any discharge!
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Let's back up, you mention the 1099 you received was a 1099-A. That is a different issue than a 1099-C which reports forgiven debt income. Your bankruptcy is entirely irrelevant to how you handle a 1099-A. A 1099-A reports that a transfer of real estate occured (I am assuming we are talking about a foreclosure, sale, or transfer that occured inside the chapter 11).
1099-A raises a capital gains issue (Schedule D of IRS Form 1040). If the property was your principal residence, then there is not likely anything you need to do. You can exempt up to $250K for filing single and $500K gain for filing married/joint, so it is unlikely in a bankruptcy/foreclosure scenario that you had any gain. If you had no gain above the exempt amounts, then there is nothing you need to do.
If the property was an investment property, the issues are different and that is a different discussion.