Tristan inherited \($2,000,000\) in 2008 when he was 25 years old. He married Tiffany later that year and they file as married filing jointly. The couple purchased a \($4,000,000\) home in 2008 and currently their mortgage balance is \($3,300,000.\) In 2023, Tristan was fired from his job as an investment banker for alleged mismanagement of his client’s funds. He has collected \($12,000\) in unemployment compensation, but the couple can no longer pay their mortgage and the home has been foreclosed. The bank was able to auction off the home for \($1,100,000\) and forgave the remaining \($2,200,000\) of debt. What are the tax consequences to Tristan and Tiffany?