MOO

Lion, I do not understand your reply. I am currently having to pay tax on cancelled debt income (from K-1) from Linn Energy. Is there a way to use it to reduce the cost basis of my stock rather than declaring it as part of my gross income, in which case I am having to pay tax on it as ordinary income.

I have Linn Energy COD. I know I need to report it as income. However, i read in the IRS instruction for K-1 (1065) that one can elect to use COD to reduce the basis of depreciable property. It says to check form 982 for details. Form 982 gives some reasons which doesn't in general apply to a limited partner of PTP. So is it possible to use this to reduce the basis of my units? This would be much better for me as I have already lost money on this stock.