It was brought back to life. https://ttlc.intuit.com/questions/4241639-tax-relief-the-bipartisan-budget-act-of-2018
Cancelled, forgiven, and discharged debt is considered taxable income, unless it qualifies for an exclusion or an exception.
Normally the debt is reported on Form 1099-C. Make sure you enter your 1099-C in TurboTax even if it qualifies for an exclusion or an exception.
Exclusions
- Cancellation of qualified principal residence indebtedness, better known as mortgage debt relief;
- Debt cancelled in a Title 11 bankruptcy;
- Debt cancelled during insolvency (the amount exceeding your assets);
- Cancellation of qualified farm or real property indebtedness.
If the debt qualifies for any of these exclusions, TurboTax will complete Form 982 and include it with your return.
*This exclusion expired at the end of 2017, but now is extended to January 1, 2021 and applies retroactively to 2018 and 2019.
