By and large, debt that is canceled or forgiven by a moneylender is viewed as taxable earnings by the IRS and must be incorporated as salary on your return form. Instances include...
If you have to settle the debt, there is a way out by filling out the form 1099-C. You can find this form from the main web of IRS where there are instructions to fill it out as well....
Your tax preparer will tell you some important things you need to know about cancellation of debt or repossession of property. Undoubtedly, such an experience is filled with...
What is Cancellation of Debt? If you borrow money and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending...