Debt Cancellation and the 1099-C

Realize that you will most likely get a 1099-C when there is cancellation of indebtedness.  Now you may not receive one, but in many situations t...


Realize that you will most likely get a 1099-C when there is cancellation of indebtedness.  Now you may not receive one, but in many situations there will still be implied cancellation of indebtedness.  So be careful.

Whether or not this will result in a large tax bill is yet to be seen.  You will have to follow tax law to determine if you qualify under one of the many exclusions.  Many people today are qualifying under the insolvency exclusion, but make sure to check with a tax professional.

Posted in 1099-C, Cancellation of Debt & Insolvency, Cancellation of Debt Income, Cancellation of Debt Questions

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