1099
Date: Mon, 11/10/2008 - 13:41
I am in the process of settling my debts but I am concearned about the tax implications. what does insolvent mean? is the money that I put aside to settle my debt count torward my assets?
Insolvent means that your debts are greater than your assets. An
Insolvent means that your debts are greater than your assets. Anything you have of value is an asset, so yes, any money set aside in an account somewhere is considered an asset, including savings, CDs, investments etc. You will receive a 1099 for the amount of forgiven debt on any settled account that is over $600, which has to be included as income on your tax return, UNLESS you are insolvent.
