The National Directory of Certified Public Accountants

Ask A CPA - Cancellation of Debt

What Form Is Used To Report The Cancellation Of Debt Exclusion For Primary Residences?

You can claim the exclusion for qualified principal residence indebtness on Form 982 by checking the box on line 1e and entering the excludable amount on line 2. If you continue to own the residence you must reduce the basis on line 10b.

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