Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

Sep 19, 2026

Form 982 (Rev. November 2004) explains how to exclude discharged indebtedness from gross income under section 108 and how that exclusion reduces specific tax attributes. Part I records why the exclusion applies by selecting the applicable discharge category and entering the total amount excluded. Part II reports the required reduction of tax attributes in a specified order. Part III covers corporate consent to basis adjustments under section 1082(a)(2).

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Part I - General Information

Part II - Reduction of Tax Attributes

Part III - Consent of Corporation to Adjustment of Basis

Form 982 (Rev. November 2004) Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) OMB No. 1545-0046 Department of the Treasury Internal Revenue Service Name shown on return 􀀁 Attach this form to your income tax return. Attachment Sequence No. 94 Identifying number Part I General Information (see instructions) 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) c Discharge of qualified farm indebtedness d Discharge of qualified real property business indebtedness 2 Total amount of discharged indebtedness excluded from gross income 2 3 Do you elect to treat all real property described in section 1221(a)(1), relating to property held for sale to customers in the ordinary course of a trade or business, as if it were depreciable property? Yes No | Part II | Reduction of Tax Attributes. You must attach a description of any transactions resulting in the reduction in basis under section 1017. See Regulations sections 1.1017-1 and 1.1017-1T for basis reduction ordering rules, and, if applicable, required partnership consent statements. (For additional information, see the instructions for Part II.) | | | | --- | --- | --- | --- | | Enter amount excluded from gross income:
4 For a discharge of qualified real property business indebtedness, applied to reduce the basis of depreciable real property
5 That you elect under section 108(b)(5) to apply first to reduce the basis (under section 1017) of depreciable property
6 Applied to reduce any net operating loss that occurred in the tax year of the discharge or carried over to the tax year of the discharge
7 Applied to reduce any general business credit carryover to or from the tax year of the discharge
8 Applied to reduce any minimum tax credit as of the beginning of the tax year immediately after the tax year of the discharge
9 Applied to reduce any net capital loss for the tax year of the discharge including any capital loss carryovers to the tax year of the discharge
10 Applied to reduce the basis of nondepreciable and depreciable property if not reduced on line
5. DO NOT use in the case of discharge of qualified farm indebtedness
11 For a discharge of qualified farm indebtedness, applied to reduce the basis of:
a Depreciable property used or held for use in a trade or business, or for the production of income, if not reduced on line 5
b Land used or held for use in a trade or business of farming c Other property used or held for use in a trade or business, or for the production of income
12 Applied to reduce any passive activity loss and credit carryovers from the tax year of the discharge
13 Applied to reduce any foreign tax credit carryover to or from the tax year of the discharge | | 4 | | | | | 5 | | | | | 6 | | | | | 7 | | | | | 8 | | | | | 9 | | | | | 10 | | | | | 11a | | | | | 11b | | | | | 11c | | | | | 12 | | | | | 13 | | | Part III Consent of Corporation to Adjustment of Basis of its Property Under Section 1082(a)(2) | | | | | Under section 1081(b), the corporation named above has excluded $ from its gross income for the tax year beginning , and ending . Under that section the corporation consents to have the basis of its property adjusted in accordance with the regulations prescribed under section 1082(a)(2) 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 must attach a description of the transactions resulting in the nonrecognition of gain under section 1081. | | | | For Paperwork Reduction Act Notice, see page 3 of this form. Cat. No. 17066E Form 982 (Rev. 11-2004) General Instructions Section references are to the Internal Revenue Code unless

FAQs

What is the purpose of Form 982?

Form 982 is used to exclude discharged indebtedness from gross income under certain circumstances described in section 108, and to report the required reduction of related tax attributes.

What information must be provided in Part I?

Part I identifies which type of discharge of indebtedness applies (e.g., title 11 case, insolvent amount, qualified farm indebtedness) and requires entering the total excluded amount.

How are tax attributes reduced under Part II?

Part II reports the reduction of tax attributes, which must be made in a specific order such as NOL first, then general business credits, minimum tax credits, net capital losses, basis of property, and certain carryovers.

Sep 19, 2026

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