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Form 982 filing from a chapter 7 discharge
Hello,
I received a 1099-C form for my discharged Chapter 7 and I filled it out accordingly. I am now on Form 982. I have no idea what to put in line 10a. I talked to three people from turbo tax and they either don't know what to do, or are guessing at what goes there. Please help!
I have the following filled in:
Part 1
Line 1a- Checked
Line 2- the debt to be excluded from gross income
Part 2
Line 10a- ?????
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IRS form 982 instructions read as follows:
Line 10a
In the case of a title 11 case or insolvency, the reduction in basis is limited to the aggregate of the basis of your property immediately after the discharge over the aggregate of your liabilities immediately after the discharge. However, this limit doesn’t apply to a reduction in basis reported on line 5 pursuant to section 108(b)(5).
Bankruptcy is a title 11 case.
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Thank you for the response, but I don't know what any of that means. I read that, also, on the IRS website. I am having a hard time getting past the IRS lingo and technical terms. Can you explain it in layman's terms?
Can you fill in my example below? Do I need to put anything else in the form?
This is non business debt with no property. I am claiming a title 11 case.
Part 1
Line 1a - Checked
Line 2- $5000 (example amount)
Part 2
Line 10a- what goes here?
Thanks!
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If the debt forgiven is not related to a business, real estate, or other property, Part II does not apply to you. You can leave that part blank.
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