2007 Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Summary: This is an example of Form 982 with the following line items filled out:
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The
“Name shown on return” field contains
“Frank and Kathy Willow”. The
“Identifying number ”field shows an identification number of
“987-00-4321”
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The box on line 1b,
“Discharge of indebtedness to the extent insolvent (not in a title 11 case)” is checked.
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The box on line 1e,
“Discharge of qualified principal residence indebtedness” is checked.
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Line 2,
“Total amount of discharged indebtedness excluded from gross income” shows
“$750,000.00.”.
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Line 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” shows
“$18,00000.”
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Line 10b,
“Applied to reduce the basis of your principal residence. Enter amount here ONLY if line 1e is checked” is
blank.
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