ProSeries Form 1120S Cancellation of Debt

Forum|Forum|5 years ago
September 12, 2020
7 replies
36 views

Debt was cancelled but no 1099-C was issued. Where is this reported on Form 1120S? Also, how do I generate Form 982?

ProSeries Professional

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M

MBuck

Level 2

I have the same question. How was this handled?

A

ASpey

Level 2

Same question here. Sec 108 says the s corp should file a 982 but it isn't in the tax program.

sjrcpa

Level 15

If it's taxable, report as Other Income.

If not taxable report on 982 and as a book tax difference on M-1.

The more I know the more I don’t know.

A

ASpey

Level 2

It is discharged debt due to a bankruptcy. From reading Sec 108, I need to reduce tax attributes based on the COD excluded from income. Thay have an NOL for 2020 and also a carryforward NOL from this business on their personal return. My thought is they should not be able to take the current year's loss or the carryforward losses since the COD is more that both of those.

Also, will the IRS not be looking for the 982? I'm not able to find the form in Proseries.

Thanks!

M

MBuck

Level 2

Intuit told me the Form 982 must be filled out manually and attached to the Form 1120S as a PDF.

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