Hi everyone, this is the first time i am preparing form 1120 for an insolvent c corp. Since the client is insolvent I understand that he should not pay any taxes due to debt cancellation. I have generated form 982 as well. I just did not understand whether i should include the discharged debt on form 1120 as ''other income'' ? If i do it then a tax is calculated on it even though i generated the form 982. Thank you for help.

Elif,