Where do I enter cancellation of debt on my taxes?
See Resources for the document link. Enter Code E, Cancellation of Debt, in box 11, "Other Income." According to the IRS, this amount is usually included in the your gross income (Form 1040, line 21). Under Section 108 (b) (5), you can elect to apply any portion of the "reduction of the basis of depreciable property."
What are the exceptions to debt cancellation?
These exceptions will be discussed later. Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay. If you own property subject to a debt, cancellation of the debt also may occur because of a foreclosure, a repossession,
Is Form 1099-C for cancellation of debt in the taxwise system?
Due to this, Form 1099-C for cancellation of debt is not currently in the TaxWise system. We recommend that the preparer visit the IRS website and research when and how to report cancellation of debt based on each taxpayer situation. Generally, data from a Form 1099-C, Cancelled debt (box 2) is reported on Form 1040, line 21 for 2017 and prior.