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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10468
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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why is proseries telling me that my client owes taxes on debt

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why is proseries telling me that my client owes taxes on debt forgiveness on a private residence after completeing form 982?

Lane :

I think that if you enter your forgiven debt (bottom of income worksheet? under less common income ... you will need to manually insert the 982 into the return

Lane :

Now, I dont have Porseries in front of me ... use the online package now Proline

Lane :

But I just went to my turbotax

Lane :

If I click FORMS on top right, then Open Form (top,left here) , then type (in the TYPE A FORM NAME box at the top) type 982

Lane :

THe form that popped up for me was Form 982:Reduction of Tax Attibutes (of course) then I clicked on OPEN FORM

Lane :

NEXT, I had to (While still in the forms view) click on FOrm 1040, then double click where amount is for line 21 (turbotax had CANCELED DEBT INCOME in there)

Lane :

I then doble-clicked and a form opens called Other Income Statement

Lane :

Actually is says “Other Income Statement” for Form 1040 Line 21. Line 15a1 of this Form showed the canceled debt amount I had put in

Lane :

AND ... it deducted the discharge amount from Line 15a3, which is the net Taxable amount of canceled debt.

Lane :

Then when I clicked back onto Form 1040 and looked at Line 21, Turbo Tax deducted the discharge amount from Form 982 Line 2.

Lane :

Now, I know turbo-tax isnt pro-series, but I bet its the same basic issue .... needing to manually insert the form into the return

Customer:

Thanks.

Lane and 3 other Tax Specialists are ready to help you

Thanks Joyce, sorry I could give you PS keystrokes

In my experience as the engines the same they have MANY similar issues.

Glad I could at least maybe point you in the right direction

Lane