Insolvency Exclusion Used With Other Exclusions
September 2, 2009 by admin
Filed under Cancellation of Debt Income, Insolvency
People often will qualify to exclude debt cancellation under multiple exclusions. This often happens when the taxpayer qualifies in part under the Mortgage Forgiveness Debt Relief Act (the “Act”), but they have additional debt cancellation that related to a second mortgage or a cash out refinance.
This cash may have been used to buy a car, [...]