Vanessa A
Expert Alumni

Get your taxes done using TurboTax

Filing for bankruptcy does not affect your ability to use or not use the K-1 form.  If the S-Corp generates the K-1, then you would enter it.  However, if these business cards have been placed in bankruptcy you will need to make that adjustment to your liability accounts in the S-Corp.  

 

Debts discharged under Chapter 7  do not generate not taxable income. 

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