What is Form 982?

Form 982 is Reduction of Tax

Attributes Due to Discharge of Indebtedness (and Section 1082 Basis

Adjustment). The amount by which you benefit from a forgiven debt

usually is included in your gross income. But under certain

circumstances, described in IRS Code Section 108, that amount can

be excluded from your gross income and instead is applied to reduce

certain specified tax attributes (basis of property, capital loss

carryovers, etc.) that otherwise would offset future income. The

purpose of Form 982 is to report the exclusion or reduction of

these tax attributes.