Are you filing a CORPORATE tax return, Form 1120 or 1120S?
Part III only applies if a corporate if attaching Form 982 to its corporate tax return.
yes corp return
Oh, okay. Normally people are doing 982s for their personal taxes.
yes but for this 1120s the lawyer wants it done right. help!!
The Part III really just reiterates the basis adjustment that should be taking place whenever you exclude COD from income.
You would enter in the first box, the number from line 2.
The tax year beginning would be Jan 1, 2011 to 12-31-2011, assuming a calendar year 2011 return.
The state incorporated in is self-evident.
so they basically want us to describe the problems that caused the corporate entity to lose the moneys in the line of credit.
Wait a minute
Are we talking about a 2011 tax return?
Is this the form you are looking at?
yes at the bottom of part III.
Oh, you are looking at the Note at the bottom. I see now.
This is really a very dry statement. You are not asking for permission or trying to explain anything.
Here's an example:
Corporation total cost basis in asset $400,000
Total Debt outstanding $300,000
Asset sold for $200,000
Cancellation of Debt allowed $100,000
thanks Tax Whisperer but now I feel like a real rocket scientist, but learning something every day is important.
also you look exactly like a copilot i had when i flew medivace choppers in Viet Nam.
I hope we're good.
Not trying to be a "wise guy" or anything. Sometimes texting comes across funny.
I hope your friend made it out alive from Viet Nam...
Ya a couple of us did.
and have a good evening.
You're welcome, Peter.