F982 - Reduction of NOL
Form 982 - I have a client who must reduce their NOL by the amount of debt discharged. The client has an NOL carryover and current year NOL from their schedule C. The discharge amount is greater than the NOL so it will wipe out all of the NOL. The ordering rule states that the current year NOL must be reduced first then the carryovers. How do I report the reduction on the form 1040 on Lacerte? How do I input the reduction with out changing the calculation for the current NOL? Must I report the reduction of the NOL on the 1040 or can I leave the NOLs as is, as long as we attach the F982?
