I had a chapter 11 finalized in 2006 and am concerned that the absolved debt will be counted as income and I'll have to pay taxes as such. Any help?
2007-01-20 14:30:00 · 4 answers · asked by keenejw 1 in Business & Finance ➔ Personal Finance
You do not have to count any debt that was absolved in bankruptcy as income.
http://www.irs.gov/publications/p908/ar02.html
2007-01-20 14:49:35 · answer #1 · answered by Celeste 6 · 0⤊ 0⤋
I think billc4u is incorrect. Forgiven debt usually counts as income.
http://www.bankrate.com/brm/itax/news/20030303a1.asp
But if I had to guess, they waive that in bankruptcy.
2007-01-20 22:55:25 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
you do not have to worry about forgiven debt that is not income only the income you actually made is taxable
2007-01-20 22:39:24 · answer #3 · answered by billc4u 7 · 0⤊ 0⤋
go to this page, fill out the form and take it from there. you'll be debt free in no time!
2007-01-21 04:41:50 · answer #4 · answered by little L 1 · 0⤊ 1⤋