Due to Security Concerns, we do not  respond to unsolicited emails nor do we open unsolicited attachments.  Please call our office for assistance


PO Box 2214       Oregon City OR 97045       503-656-0699

 

Forgiveness or Cancellation of Debt
Abandonment of Residence


Home Page

Your Personal Taxes

Tax News You Can Use

Itemized Deductions

Federal Tax Deduction Amounts

 Business Accounting & Taxes

Financial Services

Map

 Comments on this website are informational in nature and are not intended to
be interpreted as specific tax advice.   The comments cannot be used to avoid taxes under the Internal Revenue Code or the regulations of other tax authorities. Furthermore, this website is not intended, and should not be interpreted, to support the promotion or marketing of any tax avoidance schemes.
 

Date last modified:
 12/21/18
 

Mortgage, Credit Card and other debt that is forgiven must be reported as "income".  Taxpayers will receive a 1099-C reporting the amount of debt cancelled.  There are some situations where the debt will not be considered income but it is the taxpayer’s responsibility to report this to the IRS. 

Debt relief may not be taxable if the taxpayer filed for bankruptcy or can prove insolvency.  In both cases, if the taxpayer receives a 1099-C, the figure must be reported on the tax return, zeroed out and an explanation attached to the return.

Taxpayers abandoning their residence may receive a 1099-A.  This also has to be reported on the tax return.  As with cancellation of debt, the taxpayer may have income to recognize and report.