982 - Form (Rev. December 1986) - Reduction of Tax Attributes Due to Discharge of Indebtedness

Sep 19, 2026

Form 982 (Rev. December 1986) from the Department of the Treasury, Internal Revenue Service explains how to report the reduction of tax attributes when indebtedness is discharged. It directs taxpayers to attach the form to the income tax return and provides sections for general information, amounts excluded from gross income, and elections under section 1017. It also includes consent language for corporations under sections 1081 and 1082, with signature and penalty declarations.

LanguageEnglish

CategoryForms

FormatPDF

Pages2

Reading Time1 min

AccessFree to download

Part I General Information

Reduction of Tax Attributes

Part II

Consent of Corporation to Adjustment of Basis of its Property

Specific Instructions Part I

Changes You Should Note

| 982
Form
(Rev.December 1986)
Department of the Treasury
Internal Revenue Service | Reduction of Tax Attributes Due to
Discharge of Indebtedness
(Also,Section 1082 Basis Adjustment)
▶ Attach this form to your income tax return. | | OMB No.1545-0046
Expires 11-30-89 | | --- | --- | --- | --- | | | | | Attachment
Sequence No.51 | | | | | | | Name | | Identifying number(SSN or EIN) | | # PartlGeneral Information 1 Amount excluded is due to(check applicable box(es)): a Discharge of indebtedness in a title 11 case......... b Discharge of indebtedness to the extent insolvent(not in a title 11 case) Discharge of“qualified farm indebtedness”(See instructions for line 1d before completing PartII)........... 口 Total amount of discharged indebtedness excluded fromgross income .............L 2 the ordinary course of a trade or business,as if it were depreciable property? # Reduction of Tax Attributes PartⅡ Note:You must attach a description of the transactions resulting in the reduction in basis under section 1017 | Enter amount excluded from gross income:
4 Under 1aand/or 1b which you elect to apply first to reduce the basis(under section 1017)of depreciable
property.···············
5 Applied to reduce any net operating loss which occurred in the tax vear of the discharge or carried over to
the tax year of the discharge.....·....................
6 Applied to reduce certain credit carrvovers comprising the general business credit to or from the tax vear
of the discharge, . . . , ...·...···· ·· ·· ···· · ·
7 Applied to reduce anv net capital loss for the taxable year of the discharge including any capital loss
carryovers to the tax vear of discharge .. .. ,...,,...,.
8 Applied to reduce the basis of nondepreciable assets and depreciable assets if not reduced on line 4
except in the case of discharge of qualified farm indebtedness .....,.
9 Applied to reduce anv carrvover to or from the taxable vear of the discharge for determining the foreign
tax credit ·······················.·.··......
0 Which vou elect to treat as qualified business indebtedness and apply to reduce the basis of depreciable
property.················.·.·.........
1 For discharge of aualified farm indebtedness,applied to reduce the basis of property other than the basis
of land used or held for use in the trade or business of farming , . .. .
2 For discharge of aualified farm indebtedness.applied to reduce the basis of land used or held for use in
the trade or business of farming ...· .. | 4 | | | --- | --- | --- | | | 5 | | | | 6 | | | | 7 | | | | 8 | | | | 9 | | | | 10 | | | | 11 | | | | 12 | | # Consent of Corporation to Adjustment of Basis of its Property PartⅢ Under Section 1082(a)(2)of the Internal Revenue Code The corporation named above has excluded under section 1081(b)of the Internal Revenue Code $_ -_ from its gross income for the taxyear beginning---------------------_,and ending-----------_ Under that section the corporation consents to have the basis of its property adjusted in accordance with the regulations prescribed undersection 1082(a)(2)of the Internal Revenue Code in effect at the time of filing its income tax return for that year.The corporation is organized under the laws of.. (State of incorporation) Note:You mustattach a description of the transactions resulting in the nonrecognitionofgain under section 1081 Signature Uner penatiesof perjury,I declare that have examine his form,incuding accompanying schedules and statements,and tothe best of my knowledge and belief,itstrue,correct,and complete. (Date) (Title) (Date) General Instructions election to treat certain inventory asdepreciable pr

FAQs

What is Form 982 used for in a discharge of indebtedness situation?

Form 982 is used to report the reduction of tax attributes due to the discharge of indebtedness and to apply the required basis adjustments under the relevant Internal Revenue Code sections.

When must the form be attached to the income tax return?

The form must be attached to the income tax return when reporting the excluded amount resulting from the discharge of indebtedness.

What election options exist on the form for applying the excluded amount?

The form provides options to apply the excluded amount first to reduce basis in depreciable property (under section 1017) and, if applicable, to reduce other tax attributes such as net operating loss, credits, capital losses, and other basis reductions.

Sep 19, 2026

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