I received a 1099-C for a debt for a single member LLC in 2019. The LLC had filed for bankruptcy under Chapter 11. This was for a credit card. These expenses charged on the credit card were previously deducted against tax in prior years as business expenses on the Schedule C.
I understand that amounts forgiven under Chapter 11 are non taxable, however there are no operating loss carry forwards, basis adjustments or other adjustment items to report the change on Part II of Form 982
Reduction of Attributes due to discharge of debt. Would I file a Form 982 anyway?
Is the amount on the 1099-C therefore taxable? or can I still claim non taxable because it was under a Chapter 11 bankruptcy?
Thank you for any advice you can give.
