Insolvency worksheet for form 982
I received a CP2000 for debt supposedly written off in a prior tax year. Confirming the debt forgiveness aside, I believe we were insolvent but I'm unsure as I've received mixed information on how to represent the home we purchased early that same year (paid down payment, but rest being paid with a mortgage). Two people at the underreporter unit said don't put anything for it under asset, just the mortgage under liability; one person there said only put the equity under asset and mortgage under liability; general search on Google suggests it's an asset based on full market value, as well as the mortgage being a liability. Which is it? Also, if we claim insolvency does that affect anything moving forward? I read something confusing about it affecting future sales of home and/or investments.
