Yardley CPA Posted March 9, 2018 Report Share Posted March 9, 2018 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. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 9, 2018 Report Share Posted March 9, 2018 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. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 9, 2018 Author Report Share Posted March 9, 2018 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? Quote Link to comment Share on other sites More sharing options...
rfassett Posted March 9, 2018 Report Share Posted March 9, 2018 I just write in "Form 1099-C Cancellation of Debt" and the amount 2 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 9, 2018 Report Share Posted March 9, 2018 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. 1 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 10, 2018 Report Share Posted March 10, 2018 If solvent, line 21 with a note. If insolvent, form 982. 1 Quote Link to comment Share on other sites More sharing options...
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