Mortgage Debt Relief Act of 2007 – Lenders approved short sale, How do I ensure I don't pay taxes?

Primary residence, first time buyer, purchased condo at 8K in August 2006. Had 80/20 option ARM, both lenders finally agreed to short sale. Property will be sold by end of this month for 5K. How do I make sure that I don’t end up paying taxes for the difference? Am I covered under the Debt Relief Act?

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