Debt Forgiveness & Insolvency
December 25, 2009 by admin
Filed under 1099-C, Bankruptcy & Insolvency, Forgiveness of Debt, Taxes & Mortgage Relief
If a homeowner is not able to exclude all debt cancellation based on the Mortgage Forgiveness Debt Relief Act, there may be relief if they can prove they were insolvent. You are insolvent when, and to the extent, your liabilities exceed the fair value of your assets. You must determine your liabilities and the fair [...]