we short sold our home last year with approx 800k between short sale amount and loan amount. IRS says debt forgiveness is at $2 mil. for joint. my understanding originally was we were also within forgiveness with Cali. also. My accountant tells me today it's only $500k for joint filing, I did some research tonite and looks like for primary residence it's $800k and $500k for other debts. any confirmation would be great. this forum has been a great resource over the past several years with info to help through these times.