DEBIT CANCELLATION

Forum|Forum|6 years ago
March 9, 2020
9 replies
29 views

I have a client that has debit cancellation of a home in 2019. I know there are new rules for the 2019 tax year on this but can't find anything need some help here.

ProSeries Professional

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Best answer by Just-Lisa-Now-

ok now not to be a smarty because I am still a little green at this where do I find the where do I find in pro series pro

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Just-Lisa-Now-

Intuit Community Champion

This is from Nolo if you search canceled mortgage debt rather then debit, you might have better luck.

https://www.nolo.com/legal-updates/mortgage-forgiveness-tax-break-extended-through-2020.html

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

Terry53029

Intuit Community Champion

from IRS: read full text here. https://www.irs.gov/taxtopics/tc431

Generally, if you exclude canceled debt from income under one of the exclusions listed above, you must reduce certain tax attributes (certain credits and carryovers, losses and carryovers, basis of assets, etc.) (but not below zero) by the amount excluded. You must attach to your tax return a Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) (PDF) to report the amount qualifying for exclusion and any corresponding reduction of those tax attributes. For cancellation of qualified principal residence indebtedness that you exclude from income, you must only reduce your basis in your principal residence.

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