Insolvency Form 982. Web to show that you are excluding canceled debt from income under the insolvency exclusion, attach form 982 to your federal income tax return and check the box on line 1b. March 2018) department of the treasury internal revenue service.
Form 982 Insolvency Worksheet —
If you had debt cancelled and are no longer obligated to repay the debt, you generally must include the amount of cancelled debt in your income. On line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately before the cancellation. Web you must complete and file form 982 with your tax return to do so. If you have any other details regarding this question, please feel free to post them in the comment section. Sign in products lacerte proconnect proseries easyacct Form 982 is used to find the discharged indebtedness amount that can be excluded from gross income. Reduction of tax attributes due to discharge of indebtedness (and section 1082 basis adjustment). Web you must file form 982 to report the exclusion and the reduction of certain tax attributes either dollar for dollar or 33 1 / 3 cents per dollar (as explained later). Common situations covered in this publication What is a discharge of indebtedness to the extent insolvent?
Certain individuals may need to complete only a few lines on form 982. Following the reasoning and steps below will keep things straight for you, produce a clean return and shouldn't take too long. Form 982 is used to find the discharged indebtedness amount that can be excluded from gross income. Attach this form to your income tax return. Qualified principal residence indebtedness ; For instructions and the latest information. Certain individuals may need to complete only a few lines on form 982. Web 1 best answer michaeldc new member cancellation of debt and insolvency are a little complex but not complicated. What is a discharge of indebtedness to the extent insolvent? Web information about form 982, reduction of tax attributes due to discharge of indebtedness (and section 1082 basis adjustment), including recent updates, related forms, and instructions on how to file. You don’t have to do anything else, but you might want to complete the insolvency worksheet, showing how you arrived at the number, to avoid the irs questioning your.
