S Corp Taxes on discharged debt

[freeatlast09]

[tigre]

I am in the same boat. Does anyone have any thoughts?

[RuthCB]

Interestingly, I am also in the same boat, although we are just filing today, so I haven't consulted with my accountant. If I get some information from him, I'll pass it on.

[HHM]

Go with number 4. It is only a debt of the corporation. Also, unless the CC companies have issued a 1099-C to the business (under the business EIN), the debt has not been foregiven for tax purposes.

[tigre]

I agree with #4 as well. I am still operating my s-corp as the trustee abandoned it. So I leave the debt on the corporate books showing it unpaid with the remaining balances.

Do you know what the effects of this are down the line? Does it just show my corp owes that money?

One of the creditors did send a 1099-c but on us personally not the company. Do I file that as other income on line 21 and do a form 982 to dishcarge it?

Also, I want to thank everyone on this forum. I lurked here for a long time and learned alot.

[HHM]

One of the creditors did send a 1099-c but on us personally not the company. Do I file that as other income on line 21 and do a form 982 to discharge it?

Yes

[tigre]

thank you..