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    #1

    1099-c

    Client was given a 1099-C on her residence (Cancellation of Debt). Amt of debt canceled is $44K and FMV is 30K This is to be reported as $14K Ordinary Income on 1040
    Line 21. Right?
    Not in the Katrina Arena!! Thanks
    Tags: None
    #2
    Originally posted by Sherill
    Client was given a 1099-C on her residence (Cancellation of Debt). Amt of debt canceled is $44K and FMV is 30K This is to be reported as $14K Ordinary Income on 1040
    Line 21. Right?
    Not in the Katrina Arena!! Thanks
    It looks like you are on the right track
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash

    Comment

      #3
      Cancelled Debt

      Cancelled debt is not taxable income if:

      (i) the taxpayer was insolvent at the time the debt was cancelled, or

      (ii) the debt was cancelled in a bankruptcy proceeding.

      The bankruptcy question is easy to answer.

      Insolvency is a much more complex issue.

      Burton
      Burton M. Koss
      koss@usakoss.net

      ____________________________________
      The map is not the territory...
      and the instruction book is not the process.

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