Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-04-2011, 11:50 AM
Junior Member
 
Join Date: Feb 2011
Posts: 1
Wink C Corporation receives 1099-C Canceled Debt

Last year settled business card debt. We have a C-Corp and not sure where to add this on the 1120 Return. Would it be under other income?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-05-2011, 12:00 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“Last year settled business card debt. We have a C-Corp and not sure where to add this on the 1120 Return. Would it be under other income?“ You report Income from cancellation of business card debt “---->It depends on the situation; if the C-corporation cancels or forgives your debt to it, the canceled debt is dividend income to you on Form 1120 line 4. If you are a stockholder in the C- corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. However, income from cancellation of debt for the repurchase of a debt instrument for less than its adjusted issue price. However, for a reacquisition of an applicable debt instrument after December 31, 2008, and before January 1, 2011, a corporation can elect, under section 108(i), to defer the income from COD in connection with the election. If the corporation makes the election, the income is deferred and ratably included in income, on From 1120 line 10 over the 5-year period



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Cancellation of Debt Question bobadams Miscellaneous 1 03-08-2010 11:00 PM
Californians who lose their homes may face state income debt on cancelled debt!! TaxGuru California 0 09-09-2009 10:57 AM
Mortgage Debt Forgiveness Samatg For 2008 0 03-05-2009 04:20 PM
Tax Debt Relief Baynard2424 Miscellaneous 2 03-03-2009 06:46 PM
Bad Debt-3099c sappa Income 1 03-17-2008 10:19 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.