Form 982 PDF Details

When navigating the complexities of tax obligations after experiencing debt forgiveness, taxpayers find relief and guidance through Form 982, titled "Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)." This form plays a pivotal role for individuals and businesses looking to exclude forgiven debt from their gross income, thereby potentially easing their tax burdens. Designed by the Department of the Treasury and managed by the Internal Revenue Service, the form provides a structured way to address the discharge of various types of indebtedness, such as in cases of bankruptcy, insolvency, qualified farm indebtedness, qualified real property business indebtedness, and qualified principal residence indebtedness. Along with requiring the taxpayer's name and identifying number, Form 982 requires detailed input on the nature and amount of debt discharged. Additionally, it offers options for taxpayers to elect certain treatments of real property and outlines how to reduce tax attributes, which might include adjustments to the basis of property or application against specific losses and credits. The completion of this form, necessitating careful consideration of the instructions and possible ramifications on tax attributes, underscores its significance in ensuring accurate tax reporting and compliance while taking advantage of available tax relief provisions related to debt discharge.

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Form NameForm 982
Form Length1 pages
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Other namesform 982 instructions, form 982 irs, form 982 insolvency worksheet, form 982

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Form 982

Reduction of Tax Attributes Due to Discharge of

OMB No. 1545-0046

Indebtedness (and Section 1082 Basis Adjustment)

 

(Rev. March 2018)

 

▶ Attach this form to your income tax return.

Attachment

Department of the Treasury

 

 

Sequence No. 94

Internal Revenue Service

▶ Go to WWW.IRS.GOV/FORM982 for instructions and the latest information.

Name shown on return

 

Identifying number

 

 

 

 

Part I General Information (see instructions)

1Amount excluded is due to (check applicable box(es)):

a

Discharge of indebtedness in a title 11 case

b

Discharge of indebtedness to the extent insolvent (not in a title 11 case)

c

Discharge of qualified farm indebtedness

d

Discharge of qualified real property business indebtedness

eDischarge of qualified principal residence indebtedness (Caution: See instructions before checking this box if debt

was discharged after 2017.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Total amount of discharged indebtedness excluded from gross income

2

 

3Do you elect to treat all real property described in section 1221(a)(1), relating to property held for sale to

customers in the ordinary course of a trade or business, as if it were depreciable property?

Yes

No

Part II Reduction of Tax Attributes. You must attach a description of any transactions resulting in the reduction in basis under section 1017. See Regulations section 1.1017-1 for basis reduction ordering rules, and, if applicable, required partnership consent statements. (For additional information, see the instructions for Part II.)

Enter amount excluded from gross income:

4For a discharge of qualified real property business indebtedness applied to reduce the basis of

depreciable real property

. . . . . . . . . . . . . . . . . . . . . . . .

5That you elect under section 108(b)(5) to apply first to reduce the basis (under section 1017) of

depreciable property . . . . . . . . . . . . . . . . . . . . . . . . . .

6Applied to reduce any net operating loss that occurred in the tax year of the discharge or carried

over to the tax year of the discharge . . . . . . . . . . . . . . . . . . . . .

7

Applied to reduce any general business credit carryover to or from the tax year of the discharge .

8Applied to reduce any minimum tax credit as of the beginning of the tax year immediately after the

tax year of the discharge . . . . . . . . . . . . . . . . . . . . . . . . .

9Applied to reduce any net capital loss for the tax year of the discharge, including any capital loss

carryovers to the tax year of the discharge . . . . . . . . . . . . . . . . . . .

10a Applied to reduce the basis of nondepreciable and depreciable property if not reduced on line 5.

DO NOT use in the case of discharge of qualified farm indebtedness . . . . . . . . . .

bApplied to reduce the basis of your principal residence. Enter amount here ONLY if line 1e is

checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11For a discharge of qualified farm indebtedness applied to reduce the basis of:

aDepreciable property used or held for use in a trade or business or for the production of income if not reduced on line 5 . . . . . . . . . . . . . . . . . . . . . . . . . .

4

5

6

7

8

9

10a

10b

11a

b Land used or held for use in a trade or business of farming . . . . . . . . . . . . .

11b

c Other property used or held for use in a trade or business or for the production of income . . .

11c

12Applied to reduce any passive activity loss and credit carryovers from the tax year of the discharge

12

13

Applied to reduce any foreign tax credit carryover to or from the tax year of the discharge . . .

13

Part III Consent of Corporation to Adjustment of Basis of Its Property Under Section 1082(a)(2)

Under section 1081(b), the corporation named above has excluded $

 

from its gross income

for the tax year beginning

and ending

.

Under that section, the corporation consents to have the basis of its property adjusted in accordance with the regulations prescribed under section 1082(a)(2) in effect at the time of filing its income tax return for that year. The corporation is organized under the laws

of

.

 

(State of incorporation)

Note: You must attach a description of the transactions resulting in the nonrecognition of gain under section 1081.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 17066E

Form 982 (Rev. 3-2018)

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Writing part 1 of form 982 instructions

2. Once your current task is complete, take the next step – fill out all of these fields - For a discharge of qualified real, Applied to reduce any general, a Applied to reduce the basis of, DO NOT use in the case of, b Applied to reduce the basis of, checked, For a discharge of qualified farm, a Depreciable property used or, not reduced on line, b Land used or held for use in a, c Other property used or held for, and Applied to reduce any passive with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Completing section 2 of form 982 instructions

3. This subsequent segment should also be pretty uncomplicated, Applied to reduce any passive, Applied to reduce any foreign tax, Part III, Consent of Corporation to, Under section b the corporation, from its gross income, and ending, State of incorporation, Note You must attach a description, For Paperwork Reduction Act Notice, Cat No E, and Form Rev - all these blanks is required to be completed here.

form 982 instructions completion process detailed (step 3)

Always be really careful when completing Note You must attach a description and and ending, because this is the part in which most users make mistakes.

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