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 on
    Form 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 on
    Schedule E page 2
    , enter the amount in the
    Other income (loss) reported on Schedule E
    field on the K1-2 screen in the K1 1065, 1120S folder.
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