i am still confused about this form. i have a client with around 6000 of debt cancellation from credit card and received a 1099. i know the amount goes on line 2 due to insolvency. but what confuses me is part II. can part II be left blank or a box has to be checked?
if so, he does have nol, so i though maybe that line could be checked. but then do i have to reduce in nol carry over for the year?
if so, he does have nol, so i though maybe that line could be checked. but then do i have to reduce in nol carry over for the year?