Tax attribute refers to certain losses, tax credits, and the adjusted basis of property that must be reduced because of the exclusion of debt cancellation from a taxpayer’s gross income. Tax attributes are adjusted when a taxpayer is insolvent or declares bankruptcy.

When can I use Form 982?

Form 982 is used to determine, under certain circumstances described in section 108, the amount of discharged indebtedness that can be excluded from gross income.

When do I need to file Form 982?

Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) reports the amount of cancelled debt to excluded from taxable income. We’ll automatically generate Form 982 if your cancelled debt is due to: Cancellation of qualified principal residence indebtedness, aka mortgage debt relief; Debt cancelled in a Title 11 bankruptcy;

What does form 982 do for cancelled debt?

Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) reports the amount of cancelled debt to excluded from taxable income. We’ll automatically generate Form 982 if your cancelled debt is due to:

What does Line 7 mean on IRS Form 982?

Also note that for line 7, it means that if you have carryover of business credit from or to the tax year of the discharge, it is important to reduce the carryover by 33 and half cent for each dollar executed from the gross income. Step 5: Complete part III- Consent of Corporation to Adjustment of Basis of its Property Under Section 1082.

What kind of TurboTax do I need to file Form 982?

Under these circumstances and in order to file the Form 982, we generally recommend using the CD/Download version of TurboTax Deluxe or a higher edition. I notice that you are currently using our TurboTax online product. If you have not paid anything yet, you can easily cancel and change to the desktop version for your return.