(6) Sadly, Mr. & Mrs. Client have just lost their home to foreclosure. The Form 1099-C they (already) received from their bank correctly reports $400,000 in Box 2 as the outstanding principal of their mortgage debt as of the foreclosure date. Box 4 contains the word "mortgage". The only other numbered boxes with any entry are Box 1 (the date) and Box 5, which is checked. Box 7 is blank. Mr. & Mrs. Client (i) are NOT insolvent and (ii) will not file for bankruptcy protection. Discuss how you can help Mr. & Mrs. Client in terms of their federal income tax liability on these facts