Comments on: do you have to pay taxes for debt you got wiped out with debt negotiation? http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/ Sun, 11 Sep 2011 10:50:10 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: mattapan26 http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/comment-page-1/#comment-1595 mattapan26 Tue, 12 Jan 2010 15:35:20 +0000 http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/#comment-1595 As the other answers have noted, the general rule is that income from cancellation of indebtedness is included in income. There are exceptions, for instance, if you were still insolvent after the debt was forgiven, if you were in bankruptcy when the debt was released, among others. See Section 108 of the Internal Revenue Code. As the other answers have noted, the general rule is that income from cancellation of indebtedness is included in income. There are exceptions, for instance, if you were still insolvent after the debt was forgiven, if you were in bankruptcy when the debt was released, among others. See Section 108 of the Internal Revenue Code.

]]> By: STEVEN F http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/comment-page-1/#comment-1594 STEVEN F Tue, 12 Jan 2010 00:37:42 +0000 http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/#comment-1594 The creditor must report any amount above $600. You must report any amount above $0. There is no special tax rate. It is treated as regular income. The creditor must report any amount above $600. You must report any amount above $0. There is no special tax rate. It is treated as regular income.

]]> By: Bill http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/comment-page-1/#comment-1593 Bill Fri, 08 Jan 2010 17:36:59 +0000 http://debtreliefreviews.net/do-you-have-to-pay-taxes-for-debt-you-got-wiped-out-with-debt-negotiation/#comment-1593 Yes, because they've basically given you that money. They get to write off the bad debt on their taxes, but you got it as income. So you lose a percentage of the savings...I'd much rather pay the tax on $10K than pay $10K for instance. Yes, because they’ve basically given you that money. They get to write off the bad debt on their taxes, but you got it as income.

So you lose a percentage of the savings…I’d much rather pay the tax on $10K than pay $10K for instance.

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