1040-US: When should Form 982 be filed?

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Question

When should Form 982 be filed?

Answer

If canceled debt is excluded from income under section 108(a), certain tax attributes must be reduced (but not less than zero) by the amount excluded. File Form 982, Part II to reduce the tax attributes.

Related topic: Form 982 - Reduction of tax attributes due to discharge of indebtedness (and Section 1082 basis adjustment) FAQs (1040)