Posted on: 12th Feb, 2011 12:44 am
I have a 1099C cancellation of debt from a second home short sale!
I am insolvent...can I exclude the 1099c from income?
I am insolvent...can I exclude the 1099c from income?
Hi boskele,
The cancelled debt will be considered as your income and you will be liable for paying taxes on that forgiven debt. But as you're insolvent, you should have a word with a tax adviser and check out whether or not you can exclude this as your income.
Thanks
The cancelled debt will be considered as your income and you will be liable for paying taxes on that forgiven debt. But as you're insolvent, you should have a word with a tax adviser and check out whether or not you can exclude this as your income.
Thanks