Partnership Schedule K-1, line 11, code E - cancellation of debt
The cancellation of debt may be reported differently. Once you've determined how to report the amount in K-1 box 11e, use the input screens to report the amounts.
Here are examples of where to enter the amounts:
- If you need to report the amount onForm 1040, Schedule 1, line 8, use the Income screen in the Income folder.
- If the canceled debt is excluded income, use the 1099C screen in the Income folder.
- If you need to report the amount onSchedule E page 2, enter the amount in theOther income (loss) reported on Schedule Efield on the K1-2 screen in the K1 1065, 1120S folder.
