TP had debt canceled for a Marriott timeshare that was used exclusively for business trips. He paid on it for 3 years and took advantage of the benefits, but he realized he can't pay the remainder, so his debt is canceled and he no longer has benefits. There was never any money exchanged except what he paid them for the 3 years, and he is walking away from nothing except a 1099-C saying he had $15,000 in income. It wasn't like they took out a loan from a bank and the bank paid Marriott. They just agreed to pay Marriott such and such a month to buy into the timeshare. So I am really not sure how this could be considered income, but it's on the 1099-C with box 5 checked which is "debtor was personally liable for repayment of the debt." Sounds like he signed a contract without reading all the fine-print or at least without realizing he might not be able to pay for it. I'm trying to figure out a way to get my client out of paying tax on this because he is already a ways behind in back taxes. Any ideas?