You'll need to sign in or create an account to connect with an expert.
Maybe. If you can can demonstrate to the IRS that you were insolvent at the time the debt was cancelled, you can avoid taxes on that debt.
You will need to complete a Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). You should include the form with your tax return.
To insert the form in your return, do the following:
Maybe. If you can can demonstrate to the IRS that you were insolvent at the time the debt was cancelled, you can avoid taxes on that debt.
You will need to complete a Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). You should include the form with your tax return.
To insert the form in your return, do the following:
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
MS456
Level 2
DeeJayKay
Level 1
JAC191
New Member
lorris1
New Member
Earlybird
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.