BUSINESS DEBT The election is made at the partner level by completing Form 982 (Reduction of Tax Attributes due to Discharge of Indebtedness (and Section 1082 Basis Adjustments)); however, the partnership must consent to reduce the partner’s basis in partnership property.
Is Codi an ordinary income?
Although the partners receive additional basis in their partnership interests as a result of the income allocation, they often cannot offset the CODI, even if they were to sell their partnership interests at a loss, due to the character mismatch — the CODI is generally ordinary income whereas the loss is generally a …
How to attach Form 982 to your tax return?
Go to for instructions and the latest information. Form 982 (Rev. March 2018) Department of the Treasury Internal Revenue Service Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Attach this form to your income tax return. Go to
What do you need to know about form 8949?
Form 8949 is used to list all capital gain and loss transactions. About Form 8949, Sales and other Dispositions of Capital Assets | Internal Revenue Service Skip to main content
Do you have to complete all lines on Form 982?
Certain individuals may need to complete only a few lines on Form 982. For example, if you are completing this form because of a discharge of indebtedness on a personal loan (such as a car loan or credit card debt) or a loan for the purchase of your principal residence, follow the chart, later, to see which lines you need to complete.
How to report long term transactions on form 8949?
Report on a Part II with box E checked all long-term transactions reported to you on Form 1099-B (or substitute statement) without an amount shown for cost or other basis or showing that cost or other basis wasn’t reported to the IRS.
