Insolvency, is there a max #?

[AZ-Tax]

I have a prospect who in 2011 claimed insolvency not bankruptcy thus did not include 1099-C 2011 cancellation of debt in their 2011 income. Now taxpayer has 2012 form 1099-C and taxpayer says he is insolvent again the day prior of the 1099-C.

I am not aware of any restrictions on how many tax years the taxpayer can claim the insolvency is anyone else?

[appelman]

I don't believe there's a limit.

If you are insolvent just before the debt relief takes place.

[joanmcq]

I don't know of a restriction, but I wouldn't take his word for it. Do the calculation, and remember assets that aren't includable in bankruptcy still count for the insolvency calc, like the primary residence and retirement accounts.