What is Form 982?

Answer 1

Form 982 is Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). The amount by which you benefit from a forgiven debt usually is included in your gross income. But under certain circumstances, described in IRS Code Section 108, that amount can be excluded from your gross income and instead is applied to reduce certain specified tax attributes (basis of property, capital loss carryovers, etc.) that otherwise would offset future income. The purpose of Form 982 is to report the exclusion or reduction of these tax attributes.