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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (47034)3/2/2009 7:01:18 PM
From: Snowshoe  Read Replies (1) | Respond to of 219750
 
He still needs to check on the resulting credit status.

He thinks he has to pay federal income tax on the debt forgiveness, but we don't have state income tax here. I think the feds changed this for mortgage forgiveness, but I'm not aware of anything about other debts. Guess I should check into it.



To: energyplay who wrote (47034)3/29/2009 3:13:28 AM
From: Snowshoe  Respond to of 219750
 
>>check to see if this debt forgiveness will be taxable as income at federal and state levels.<<

Here's a detailed article on that issue. Looks like you can escape taxation on the debt forgiveness if you can prove that you're insolvent...

TAXWATCH: Injury, sure, but hold the insult
Facing a tax bill on cancelled debt? There is a way out
marketwatch.com


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