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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How do I complete Screen 982 when there is qualified farm indebtedness?

Answer

If canceled debt was excluded from income under both the insolvency exclusion and the exclusion for qualified farm indebtedness, the tax attributes must be reduced by the amount excluded under the insolvency exclusion before applying the exclusion for canceled qualified farm indebtedness. To report the excluded amount as applied to qualified farm indebtedness, enter the excluded amount in the applicable fields in Screen 982 or 982S (as applicable). The following qualified farm indebtedness fields are available.

• Qualified farm indebtedness, applied to reduce basis of Depreciable property
• Qualified farm indebtedness, applied to reduce basis Land
• Qualified farm indebtedness, applied to reduce basis Other property

If electing to reduce the basis of qualified property, do so in the following order.

1. Depreciable property
2. Land used or held in the taxpayer's farming business
3. Other qualified property

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