Hi.
I have an issue. I think I may of incorrectly filed my taxes with TurboTax.

Last year, I short sold a property that was near foreclosure. It was the first house I bought and quickly outgrew. Bought another and had trouble selling the first and ended up short selling it.

How I understood the insolvency worksheet, is that if my liabilities exceeded my assets, I was insolvent. I believed I met this criteria, but now that I've filed (Got an extension, wasn't able to file by April due to New baby, just didnt have time to wrap my head around it all) I am not so sure, and think I should file an amended return and catch my mistake before the IRS lol.

I am not sure I understand assets. My Primary residence is underwater by 20,000 and I have no cash and no other assets. I'm actually in the process of filing chapter 7 bankruptcy due to loss of income, in my mind I am very much insolvent.

Can someone explain the liabilities vs asset? Is my underwater mortgaged property considered an asset?

Thanks for your time.