Hello there ... I've been following and reading the replies ...
I understand the basis for the insolvency worksheet, and then the form 982. I'm confused on how to do the 2nd one, and those thereafter. Unfortunately, I have about 8 to do.
I'm wondering if this gets easier on the 2nd one? Would the form basically stay the same, except that now I will be reducing my liabilities by the amount of total debt from 1099-C #1. And then after the 2nd Form 982, the 3d 982 form, would be total liabilities, which will now have been reduced by total debts cancelled from #1 and #2? Is it this way that the rolling reduction of liabilities continues on down? Also, as I updated the 982 form each time, do I then have to update the Worksheet?
OR do I do multiples 982s, and then enter the total 1099-C one time on Turbo Tax?
Thank you for the guidance!
