discharge of the indebtedness?

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discharge of the indebtedness?

after IRS informed me i have income from discharge debt, I want to repay the debt. Do i have income then?

2006-11-05 17:05:45 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States

2 answers

No, but you are out of pocket the whole amount of the debt. By paying the taxes you are only out of pocket the tax dollars. For example the debt is $1,000, repay it and you are out of pocket $1,000. If you are in the 25% tax bracket you would only be out of pocket $250 by not repaying the debt.

2006-11-05 22:36:25 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋

25 past 7

2006-11-05 17:06:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋