When I enter the 1099-A on it's own with the estimated value of the property on it Proseries creates a Canceled Debt worksheet that computes the gain/loss. I don't see any way to link that to the existing Asset Worksheet for Schedule E. When I then enter the disposition on the Asset Worksheet for $0 it creates a loss that seems like it's doubling the loss of the property value entered on the 1099-A. Since there's no way to link the 1099-A to the asset it seems my only choices are to not enter the 1099-A but enter the canceled debt amount on the asset as the sale price OR enter the 1099-A and enter the current value of the property as the sale price on the asset so that the sale of the asset $0s out.

Does either of those seem more correct than the other to anyone?