Answer Happy

Question 17 of 75. Which of the following statements is TRUE regarding Form 982 and the reduction of tax attributes required for the Qualified Principal Residence Indebtedness (QPRI) exclusion? O Not required in the year cancellation of debt income is realized since tax attributes are not reduced until the beginning of the year following the cancellation. O Not required in the year of cancellation but the tax attributes are reduced in the year of cancellation. Required in the year of cancellation since tax attributes must be reduced as of the date of cancellation. O Required in the year of cancellation to report the principal residence basis reduction on line 10b, which is not carried out until the year following the cancellation.