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QUESTION DETAIL
Related User
Votes
In 2010, we had a cancellation of debt income from a Partnership K-1. This was deferred until 2014 by agreement of all partners and the proper paperwork was filed. In 2014, we have to report 1/5th of this income. How is this reported on our 1040? Will it flow through from a line on our K-1 or do we have to report it ourselves?
ANSWER
The BIDaWIZ Team's Answer:
Yes, it should be reported on your Line 11 of your Schedule K-1 with the code (E) as the character of the income is cancellation of debt.
