1099 C - Credit Card Balance Discharged

[Yardley CPA]

Client received 1099-C, credit card balance was discharged.  It's a line 21 item, but do you write in or place it on the Cancelled Debt (1065 K1)??  I do not see a Cancelled Debt (1099 C) option. 

[jklcpa]

How is this COD income related to the partnership you eluded to? Was the credit card in the partnership name with COD income to the partnership itself?

COD income on a K-1 goes on line 11 with code "E", if that is your question.

[Yardley CPA]

Hi, JKLcpa...Line 21 worksheet shows a "Cancelled Debt" option but it has (1065-K1) next to it.  This 1099-C is not part of a partnership or K1.  It was sent to the client by Sam's Club who discharged the clients debt.  I do not see an option on the worksheet to enter Cancelled Debt not pertaining to a 1065-K1.  So I'm wondering if it should just be typed in or should it be placed on the Cancelled Debt (1065 K1) line?

 

[rfassett]

I just write in "Form 1099-C Cancellation of Debt" and the amount

[jklcpa]

1 hour ago, Yardley CPA said:

Hi, JKLcpa...Line 21 worksheet shows a "Cancelled Debt" option but it has (1065-K1) next to it.  This 1099-C is not part of a partnership or K1.  It was sent to the client by Sam's Club who discharged the clients debt.  I do not see an option on the worksheet to enter Cancelled Debt not pertaining to a 1065-K1.  So I'm wondering if it should just be typed in or should it be placed on the Cancelled Debt (1065 K1) line?

 

Ah, I see now why you asked, and thanks for clarifying.  Sorry, my software doesn't have a screen with any notation like that, in fact no preprinted line at all.  As Ron said, I'd just type it in on a blank line.

[Pacun]

If solvent, line 21 with a note. If insolvent, form 982.