Hi,

I'm working with an S-corp that had $80K of credit card debt cancelled in 2024. They have no other assets which should make them insolvent. My understanding is that this is not taxable to the shareholders. I plan to fill out form 982 and attach it to the final 1120S. Please correct me if I'm wrong but I think all I have to do is check box 1b under part 1 and put $80K on line 2. I don't think I have to fill out part 2 or 3. Do I have to attach something that lists the name of the credit cards and the amount cancelled for each?

Thanks