Taxpayer received 1099-C for short-sale of a rental. The rental was previously taxpayer's personal residence and he had taken funds from refi when personal residence that was used for other purposes. A portion of the 1099-C qualified for the QRPBI exclusion. My question is should the remaining portion of 1099-C flow to Schedule E or line 21 of 1040. In my research, there were some who noted that 1099-C income should flow to the schedule E if the 1099-C originated from a rental. However, the 1099-C claimable portion were funds that were obtained prior to rental. The placing of the 1099-C from Schedule E to 1040 line 21 makes a substantial difference on the outcome of return as he has losses from other rentals that come into play.