Form 982

[Terry D EA]

I have read pub 4681 several times regarding the discharge of debt due to insolvency. My client is definitely insolvent and I have the appropriate boxes checked on section I of form 982. Section II deals with reducing the tax attributes. This is a discharge of credit card debt. Maybe I have read the pub too many times but I am lost as to where to put the entire amount in section II. If I am reading the pub correctly, because the client is insolvent, the entire amount is to be entered but where?

[Jack from Ohio]

Line 2

[Terry D EA]

Jack I know that and do have the box 1b checked and the amount in line 2. Maybe I have read the Pub too much or am over thinking this but it seems there is a requirement for section II of the 982. Am I totally missing it?

[Jack from Ohio]

Jack I know that and do have the box 1b checked and the amount in line 2. Maybe I have read the Pub too much or am over thinking this but it seems there is a requirement for section II of the 982. Am I totally missing it?

You ARE overthinking this one.

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 section 1.1017-1 for basis reduction ordering rules, and, if applicable, required partnership consent statements. (For additional information, see the instructions for Part II.)