Student Loan Cancellation of Debt (1099-C) due to permanent disability under IRC Section 108 (f) 5 (iii)

Forum|Forum|6 years ago
March 24, 2020
1 reply
20 views

How would I enter this in Lacerte? I am assuming that you would show the 1099-C as income in Lacerte, and then "ZERO the amount out" directly below the Lacerte entry with the following description: "non-taxable pursuant to IRC Section 108 (f) 5 (iii)." Any help would greatly be appreciated!

Lacerte Tax

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Best answer by George4Tacks

That sounds like a sound way to do this.

Back in the olden days, IRS had problems with a net zero for other income, but e-file gets all the information to them in a more logical way.

George4TacksAnswer

Level 15

That sounds like a sound way to do this.

Back in the olden days, IRS had problems with a net zero for other income, but e-file gets all the information to them in a more logical way.

Answers are easy. Questions are hard!

B

Bill2220Author

Level 3

Agreed. I have also used this method for incorrectly issued 1099's for business clients who received 1099's with their personal ss#, rather than their efin. I zeroed it out as a "nominee distribution" to the corp. Thanks!

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