Reporting Form 1099-C, Cancelation of debt on Form 1041 in Lacerte

The IRS hasn't provided guidance on how a cancelation of debt (Form 1099-C) should be reported on a fiduciary return. For further assistance, contact the IRS or refer to About Form 1099-C, Cancelation of Debt.

If the IRS suggests reporting the amount on Line 8, Other Income:

1. Go to Screen 20, Other Income.
2. Enter the Description.
3. Enter the amount in the field labeled Income.