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Where do you show a client is insolvent at the time of a cancellation of debt on a California form?

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982 will be applicable to CA as well as IRS. https://proconnect.intuit.com/community/help-articles/help/generating-form-982-reduction-of-tax-attr...

Note that the discharge does NOT flow to 1040, so you need to enter another "other income" item such as "Insolvency Form 982" and a negative number to indicate the amount.

 

Income tax returns are the most imaginative fiction being written today. — Herman Wouk
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Level 15

Since CA starts with the fed AGI and the federal copy is sent with CA, Ive never done anything extra on a CA return for canceled debt with insolvency....but Im using proseries, so maybe PTO is different


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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