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Originally Posted by Ellie R Thank you for responding, this was a personal bankruptcy that was granted in August 2016 and the 1099-c reflects that date and was just received. So no need to file a business tax return and just file the personal with the 982? On the 982 do I only list the amount from the 1099-c that the bank listed? Also do I need to complete anything else on the 982 parts 2&3 ?
I really appreciate your help. |
Thank you for responding, this was a personal bankruptcy that was granted in August 2016 and the 1099-c reflects that date and was just received. So no need to file a business tax return and just file the personal with the 982? ========>No on 1040; The amount which is excluded from taxable income is not reported on your 1040 form.If you exclude only part of forgiven debt on form 982 , then I gues the rest is reported on line 21 form 1040 as other icnoem as part of youe AGI.however this is not your caseIf the full amount of forgiven debt is excluded , then, none is reported on form 1040 , but you need to attach form 982 to your tax return.The correct way to ensure that you do not have to pay taxes on any debt ?forgiven? in bankruptcy, and properly allocate any tax attributes, is to file IRS Form 982 for the tax year in which you received your bankruptcy discharge.
On the 982 do I only list the amount from the 1099-c that the bank listed? Also do I need to complete anything else on the 982 parts 2&3 ?========>>>>>>>> In the case of credit debt, you need to Check the box on line 1b if the discharge occurred when you were insolvent .Include on line 2 the amount of discharged nonbusiness debt that is excluded from gross income. If you were insolvent, You are insolvent when your total debts are more than the fair market value of your total assets., do not include more than the excess of your liabilities over the fair market value of your assets.you need to Include on line 10a the smallest of (a) the basis of your nondepreciable property, (b) the amount of the nonbusiness debt included on line 2, or (c) the excess of the aggregate bases of the property and the amount of money you held immediately after the discharge over your aggregate liabilities immediately after the discharge.