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Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "cancellation"

Basics of Cancellation of Debt Income

Cancellation of debt income may be defined as the amount of debt forgiven by a creditor without requiring any considerations in return. The amount of debt forgiven by the cancellation of debt by a creditor might be considered as income to the debtor and hence would have to be reported as part of the individual’s gross income. Usually, such income might fall under the tax purview and may be taken up as ordinary income to the taxpayer. Hence the amount would be known as cancellation of debt income or CODI. If the cancellation of debt income might be taxable, then the debtor would be given a Form 1099-C at the financial year end where in the amount of the forgiven debt would be shown as taxable income. For example, if … Read entire article »

Filed under: Bankruptcy Help, Insolvency

Home Foreclosure and Debt Cancellation FAQ’s

Article by Chris Sims Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $ 2 million of forgiven debt is eligible for this exclusion ($ 1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. The amount excluded reduces the taxpayer’s cost basis in the home. More information on claiming this exclusion will be available soon. The questions and answers, below, are based on the law prior to the passage of the Mortgage Forgiveness Debt Relief Act of 2007. 1. What … Read entire article »

Filed under: Foreclosure Help, Insolvency

The 1099-C And Cancellation Of Debt From A Short Sale

Do you know about the 1099-C and cancellation of debt? When a home owner sells his or her property using a short sale a 1099-C is generated.The IRS issued a news release on Sept 17, 2007 trying to clarify the 1099-C in regards to foreclosures. Many homeowners are unaware of this situation and feel once the property is gone all financial obligations are wiped out. That may or not be a correct assumption. This will illustrate how the IRS determines your potential liability in a short sale or a foreclosure. How to figure cancellation of debt income 1. Enter the total amount of the debt canceled/forgiven. ____________________ 2. Enter the fair market value of the property from Form 1099-C, box 7. ____________________ 3. Subtract line 2 from line 1. If less than zero, enter zero. ____________________ Keep … Read entire article »

Filed under: Insolvency

Registered Tax Return Preparer Study Covers Tax Angles for Home Debt Cancellation

As an increasing number of individuals are affected by debt cancellation, tax preparation companies are frequently called upon to address this matter. Forgiven debt is usually added to taxable income, but exceptions do exist. Taxpayers with cancelled debt receive a Form 1099-C from the financial institution where they borrowed money. Because this form is also sent to the IRS, paid tax preparers should not ignore it. The amount on the 1099-C is not taxable if it relates to indirect debt, such as a co-signer on a loan. Only the taxpayer who received use of the borrowed funds is subject to reporting income by not repaying the debt. However, a borrower with cancelled debt discharged in bankruptcy or caused by insolvency is not taxed on the amount. For these individuals, tax preparation services … Read entire article »

Filed under: Debt Relief, Insolvency, Mortgage Refinancing

Tax implications of cancellation of debt

Article by Ask Bill You have opted for cancellations of debt as a way out of the increasing sums you owe your creditors. However, you do not know about the implications behind the cancellation of debt and whether it will be considered as an income, thus, making the forgiven sum taxable. Many questions are probably whirling around in your mind now and you are worried no end about possibly having to fork out thousands to the Inland Revenue Service. Just to put your mind to rest, you may want to read on to learn more about the implications, especially the tax implications, behind this method of resolving your debt issues. First things first. If you are forgiven a sum more than $ 600 by a lender, the lender is required under the … Read entire article »

Filed under: Insolvency

1099 C Cancellation of Debt – Understanding Tax on Forgiven Debts 1099 C Cancellation of Debt or tax on forgiven debt information at Falcon Credit Management is one of a variety of debt management services we specialize in. Video Rating: 5 / 5 … Read entire article »

Filed under: Insolvency

Debt Cancellation, 1099, and Short Sales

Neil Thomson of Thomson Conant PLC, a prominent Phoenix, Arizona law firm, discusses the 1099 resulting from Debt Cancellation and how it comes into play in Short Sales and Foreclosure in Arizona. Mr. Thomson discussed the 1099 and Debt Cancellation in a short sale event hosted by Brian Gubernick of Keller Williams Arizona Realty and Homehelper Consultants, a group that specializes in the sale and negotiation of Phoenix and Scottsdale Short Sales. … Read entire article »

Filed under: Debt Relief

Dorinda Clark-Cole* Debt Cancellation Revival*

Dorinda Clark-Cole Preaches during Debt Cancellation Revival.. God’s house of Prayer, Auburn, al She’s my fav clark sister, I still cant believe i got the opportunity to stand this close to her! wow!!1 … Read entire article »

Filed under: Debt Relief

False Prophet Peter Popoff Sells Debt Cancellation

He sends his followers tons of mail, including small vials of “miracle spring water” and debt cancellation kits, then asks his viewers to send small donations. In return, Popoff promises — as a messenger of God — to heal and unlock the secrets of financial security and wipe out all debt. … Read entire article »

Filed under: Debt Relief

Dr. Dorinda Clark-Cole & Beverly Crawford Debt Cancellation Revival “11″

“Its About Time For A Miracle”Musicians-Joe Smith,Brandon/Shelton Collins,Jacalvis Darden,Rodney Bullie Keith & 9 year old Drummer Tejek @SistaBAMM-Beverly Crawford wrecked the house at this Debt Cancellation conference. Are u expecting your miracle? … Read entire article »

Filed under: Debt Relief

Can a cancellation of debt be revoked?

I received a cancellation of debt form (1099-C) on a HELOC that we are behind in paying. I filed it with my taxes along with an insolvency form. Everything was good until about 2 weeks after I filed my taxes, when I received a Corrected 1099-C form along with a letter from the lender stating that they were making corrections to the previous 1099-C forms they had sent out for the 2009 tax year. The corrected form showed the amount of debt canceled at $0. What does this mean? Has my debt cancellation been revoked? Did they accidentally send me a 1099-C form on a debt that wasn’t canceled? Could it be that the tax year was wrong? They didn’t tell me why this happened. Unfortunately, the loan … Read entire article »

Filed under: Insolvency

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