The IRS form 1099-C reporting non-personal debt, such as for a business or a rental property or a farm would be reported as income to the business, rental property or farm.
IRS Publication 525, page 20, states:
If the debt is a nonbusiness debt, report the canceled amount on Schedule 1 (Form 1040), line 8c. If it's a business debt, report the amount on Schedule C (Form 1040) or on Schedule F (Form 1040) if the debt is farm debt and you're a farmer.
What is the nature of this non-personal debt? And what is the nature of the business entity that would be reporting the income?
In TurboTax Premium Online, you are able to enter the IRS form 1099-C reporting personal debt as follows:
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click the down arrow to the right of Less Common Income.
- Click to the right of Miscellaneous Income, 1099-A, 1099-C.
- Click to the right of Cancellation of debt (form 1099-C).
The entry will be reported:
- on line 8c of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
@anmcmahon
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
