in Education
I have a farm that operates as an LLC partnership. I use TurboTax Business for the form 1065. I indicated that I received Cancellation of Debt not related to PPP then continued through the walk through. I was never asked about the cancellation so it doesn't appear anywhere on the Schedule K-1. It should populate line 11 with a code E for each partner's portion of the cancellation. I have tried to enter the amount in Other Income sections but it doesn't appear on Line 11.
How do I get this into the form?
You'll need to sign in or create an account to connect with an expert.
Yes, you are correct. When a partnership receives Form 1099-C reporting canceled debt, this becomes income passed through to the partners on Schedule K-1.
To enter cancelation of debt income in the partnership return, go to Forms:
Entering 1099-C under Other Income includes the amount in net income but loses the debt cancellation character.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
mlucas44
New Member
in Education
kmc21
Level 1
Gumdr0ps
New Member
Navwave
New Member
zwillhidejames
New Member