STATEMENT OF INCOME FROM DISCHARGE OF INDEBTEDNESS
R
Use this statement to figure taxable income from the discharge of indebtedness in bankruptcy or insolvency, or as qualified farm indebtedness. Form 982 also
must be prepared if any such income is excluded. Any property that was taken in payment of debt must be reported as sold on the appropriate schedule. Take
information from Forms 1099- C and 1099- A. Ask if any other debt was discharged.
I.
II.
III.
IV.
Net Worth Immediately Before the Discharge of Indebtedness
All Assets (including money - list item and FMV) All Liabilities (type and amount)1. 2.
1. Total 2. Total
3.
Title 11 bankruptcy: Court
Chapter
Amount of insolvency (line 1 minus line 2, or - 0- if line 1 is more than line 2)
Location
Date filed Date settled
Computation of Taxable Income from Discharge of Debt
4.
5.
6.
7.
8.
9.
10.
Total debt satisfied (use separate column for each debt)
Amount of debt satisfied by property taken in payment of debt
Debt discharged (line 4 minus line 5, but not less than zero)
Amount on line 6 that would be deductible if paid
Debt discharge income (line 6 minus line 7, but not less than zero)
Types of property on line 5
Types of deductions on line 7
Computation of Income from Discharge of Indebtedness
11.
12.
13.
14.
15.
16.
17.
18a.
18b.
18c.
19.
20.
21.
22.
Debt discharge income (sum of all columns, line 8)
Amount excludable; enter line 3 (or line 11 if in bankruptcy or line 22 if qualified farm indebtedness)
Taxable amount (line 11 minus line 12, but not less than zero). Enter on Form 1040, line 21 or appropriate form
Tax Attributes*
Net operating loss carryovers
General business credit carryovers_____________________x 3
Alternative minimum tax credit_____________________x 3
Capital loss carryovers
Basis of assets other than money
Limitation (__________basis- __________ debt remaining after discharge)
For bankruptcy or insolvency, enter the smaller of line 18a or 18b. For farm debt, enter line 18a
Passive activity loss carryovers
Passive activity credit carryovers _____________ x 3
Foreign tax credit carryovers ___________ x 3
Total tax attributes
*Lines 14,15,17, and 19- 21 are figured after figuring the tax for the year of the discharge. Line 16 and line 18a are figured at the beginning of the year after the
year of discharge. Line 18b basis is property including money held immediately after the discharge, debt is line 2 minus sum of line 4 columns, or from taxpayer's
Note:
To complete this statement for qualified farm indebtedness: (1) complete a tentative tax return without including any income from discharge of
indebtedness, (2) complete WS Dsch Stmt and Form 982 to apply the insolvency provision, using the tentative tax return to figure the tax attributes,
(3) complete a second WS Dsch Stmt and Form 982 to apply the qualified farm indebtedness provision, entering in Part IV the tax attributes from the first
1040- 98 statement minus the applicable reductions from the first Form 982 (except include the basis of eligible property only and don't complete line 18b),
(4) redo the tax return, reporting any nonexcludable debt discharge income (do not reduce this income by any losses or the tax on the income by any credits),
and attach the WS Dsch Stmt(s) and Form(s) 982 to the return.
Note
: To figure the taxable income from discharge of qualified real property business debt, complete this statement first if it applies and then complete statement
1040- 98A.
records.
(attach statement if necessary)
Date of debt discharge not in bankruptcy Check box if qualified farm indebtedness
Name SSN/EIN
WS Dsch Stmt FDWS98- 1V 1.31
Form Software Copyright 1996 - 2009 H&R Block Tax Services, Inc.
