I am filing a 2018 tax return with 1099-C on a personal residence mortgage loan. TP filed bankruptcy in Sept 2017. In fact the property in question was sol in 2003. Not sure why the bank still has the mortgage open and finally did not pursue TP and cancelled the debt. I know that since TP is in bankruptcy, that the 1099-C is not taxable. I have entered info in form 982 (after entering 1099-C info), line 1e, 10b.
However, it is still showing as taxable, and not excluded after making the election/selection in form 982, does the info not flow into form 1040? Am i to enter another income and enter the forgiven amount as negative to offset? Please advise, I have read the form 982 instruction, but not sure the software is following the information entered. Thank you