cancellation of debt: Cancellation of Debt Exceptions - 09/17/19 08:06 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. Cancellation of Debt produces taxable income unless that income is can be recharacterized or is one of the exceptions. See the previous post explaining the reporting process for Cancelled Debt https://activerain.com/blogsview/5413175/cancellation-of-debt---can-you-avoid-the-taxes-
Canceled debt that’s not included in income because we recharacterized it as something else include:
Debt that’s canceled as a gift, bequest, devise, or inheritance Certain cancellations of student loans Interest that was included with the principal that was written off A qualified purchase price reduction given by a seller The Canceled Debt exclusions include:
Debt … (1 comments)

cancellation of debt: Cancellation of Debt – Can you avoid the taxes? - 09/16/19 08:19 AM
I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS and Florida Department of Revenue. You think you see the light at the end of the tunnel when your creditors write-off your debts to them as uncollectable. But suddenly, there is another train heading your way. The write-off itself is taxable income.
All financial institutions such as banks, credit unions, and any organization in the business of lending is required to issue a Form 1099-C in the year that a “recognizable event” occurs and the amount of cancellation is $600 or more. If you get one of these, please understand that the … (0 comments)

 
Jim Payne, CPA, CPA firm practicing in the area of IRS Collections (Backoffice Squared) Rainmaker large

Jim Payne, CPA

CPA firm practicing in the area of IRS Collections

Gainesville, FL

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Backoffice Squared

Mobile: (352) 317-5692

Office: (352) 376-9401

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