I purchased my first residence for $130,000 in 1996 and then converted it into a rental property from 2004 until 2011. In 2011, the foreclosed on the property. The bank has furnished a 1099-C form for the cancelled debt of $180,000. When I converted my residence to the rental property, the value was about $285,000, but when it was foreclosed, the value was about $170,000. How do I report the loss and cancelled debt on my 2011 tax return?