IRS Form 982...

Had cancelled debt in 2011.  Did the insolvency worksheets.  Partially insolvent.  Attempting to complete Form 982.  Checked box 1b. Entered excluded/insolvent amount on Line 2.  Called IRS to make sure done correctly.  Said I also had to answer line 10a.  Didn't understand his explanation.  Still confused what this means.  Please help.  What goes on line 10a?  Does TurboTax have the capability to send the 982 form as well?  The IRS rep said I could still e-file if TurboTx had the software/capability.
    The software does definetly have the capability to efile both the Form 982 and insolvency worksheets. On your question regarding 10a: Applied to reduce the basis of nondepricable and depricible property if not reduced on line 5. That can be a tricky question since cancelling a debt is such a complex subject.  I have filled out this form on my own return in the past and I usually do not worry about blocks 4-13. Block 10b seems to apply if your a business. and have Depricable and Non-Depricable property.

    The definition of Deprication is:
    Any type of asset that is eligible for depreciation treatment. Depreciable property can include vehicles, real estate, computers and office equipment, machinery and heavy equipment, and several other categories of assets. Depreciable property items tend to be long-term assets.

    So my take on block 10b is that the IRS rep was wrong and its not required unless you actually have depricible or nondepricible property that your trying to reduce the basis in.

    Its a complex subject though so I would probably call Turbotax Tax Advice team to be sure. They are staffed by actual CPA's trained in this area.
    Contribute an answer

    People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

    1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
    2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
    3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
    4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
    5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.