1099
Date: Mon, 11/23/2009 - 08:08
what % does the goverment tax you on forgiven debt?
i dont know what the % is, but say your forgiven debt was 500.00
i dont know what the % is, but say your forgiven debt was 500.00 that 500.00 is considered income when filing your tax returns. Now you are most likely eligible to fill out form 982 that will prove that you were insolvant at the time making you exempt from paying it. you will have to talk to your tax preparer at the time while filing your tax return.
Quote:Originally Posted by love_my_thingsi dont know what the %
Quote:
Originally Posted by love_my_things i dont know what the % is, but say your forgiven debt was 500.00 that 500.00 is considered income when filing your tax returns. Now you are most likely eligible to fill out form 982 that will prove that you were insolvant at the time making you exempt from paying it. you will have to talk to your tax preparer at the time while filing your tax return. |
actually love my things.anything over 600.00 must be counted.anything under 600.00 is exempt.yes form 982 is the insolvency form.that criteria counts for all creditors.example.
you have 5 creditors you owe 1500.00 each to.
you settle each for 1000.00
the 2500.00 is not going to be reported as it was 5 500.00 settlements.as far as percentage goes.if filing form 982 fails.i don't know either on that.
Any money over 600.00 must be reported to the irs, but if you fi
Any money over 600.00 must be reported to the irs, but if you fill out form 982 you will probably not have to pay tax on it