1099-C info: Debt description 2 vessels Business Assets. Debtor personally liable. Event Code 6.

I think this will end up as taxable Other Income on 1040.

Trying to see if can somehow be excluded from income. Or included as income on the 1120S itself rather than on the 1040. (If income on 1120S, have P/Y Carry forward loss to apply)

Note the cancelled amount gets entered on 1120S page 3 Sch B 'Other Info'. Don't see where it flows to K-1 to shareholder. Should it be on K-1? Or just enter amount on 1040?

Note the only exclusion from income that would remotely apply is if it's Qualified Real Business Property debt forgiveness. Doesn't look like charter boats fall under this category.

Any ideas?

Thanks.