Hello again James,
The value of the land would be included as one of your assets. But then the amount you owe on the land would be included as one of your liabilities. So right there you are at the even point if the land sells for less than what you owe on it. So your other assets and liabilities outside of the land and the note on the land need to net out to zero or less.
And yes, you can and should include credit card debt or any other debt you have such as car loans, home mortgages, or any other legally enforceable debt that you owe.
As far as whether it is better to do a short sale or foreclosure, the tax consequences will be treated in the same manner. And you do not need to file this before next year. If you plan to try and use the insolvency exclusion, that option has always been available to taxpayers, and will continue to be unless the law changes at some point. But I honestly do not see that being one law that would likely change.
As far as being audited, I do not particularly see this as a huge risk. With the economy being the way it has been for the last couple of years, the IRS is seeing a marked increase in the number of people with canceled debts, and the great majority of them are claiming exclusion either due to insolvency or bankruptcy. So I do not think this would be a particular risk for you.
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Thank you again James