Posts Tagged ‘cancelled debt’

If You Think Your Foreclosure is Said and Done, Think Again, Because You May Owe Major Bucks in Back Taxes

Thursday, May 13th, 2010

Recent news reports that many Americans who found there homes underwater are now drowning in back taxes.  In the Wall Street Journal article, A Surprise Hit on Foreclosures, Jeff D. Opdyke recounts the stories of some of the millions of homeowners across the nation who “are discovering that their decision to walk away from a mortgage could result in tax bills running into the thousands or tens of thousands of
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Ask the Tax Resolution Expert: Canceled Debt – Is it Taxable Income or Not?

Tuesday, April 7th, 2009

It’s tax season – the perfect time to resolve your tax probelms and get your IRS questions answered!
I’ve received several questions in the past few weeks asking about cancellation of debt and taxability. Below is a good summary from the IRS website.

Topic 431 – Canceled Debt – Is it Taxable or Not?
In general, if a debt for which you are personally liable is canceled or forgiven, other than
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