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Taxation of forgiven debt

Capricious avatar
Beach Fanatic
1,202 views
Signed by President.


http://tinyurl.com/2f64p9

Replies

4
Beach Fanatic
#2
So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence? :blink: Seems logical, I guess. :idontno: What do you think?
Matt J avatar
SWGB
#3
Wasn't this done for credit card debt that is written off?
wrobert avatar
Beach Fanatic
#4
So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence? :blink: Seems logical, I guess. :idontno: What do you think?


Does that not just seem an interesting way to avoid paying taxes?
scooterbug44 avatar
SoWal Expert
#5
I thought the intent was that they just didn't tax the amount of debt forgiven as "income". So if you made a deal and got a lender/bank to forgive $200,000 in debt, it wasn't going to bite you at tax time as an additional $200k in income. :idontno:

Not that the tax rules ever make sense :roll:.

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