Taxpayer guaranteed his Daughter/son-n-law's business loan with 60 acres.  They lost the business and the bank is pursuing the guarantor for payment.  He has negotiated a "lesser" interest rate and the BANK is saying they will be sending HIM a 1099-C for the amount of interest charge that was reduced.   

IS my taxpayer able to deduct the interest expense on HIS Schedule F as mortgage interest because the land was offered as security?  And if he cannot deduct it there, IS THERE ANYWHERE to list the actual interest expense he IS paying to help offset the 1099-C?