1099-c

Date: Mon, 04/11/2011 - 05:37

Submitted by on Mon, 04/11/2011 - 05:37

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Do I have to pay taxes on the balance that was forgivin in the settlement?
I've been sent a 1099-c for my business credit card that was settled 7/9/2010......I have no assets or anything,only a checking account with 18.00 left over.

Thanks for any advice...

Total Replies: 3

Greetings "1099-c", You'd best run that one by a tax accountan

Greetings "1099-c",

You'd best run that one by a tax accountant.

What type of legal entity was your business?

Sole proprietor, LLP, dba, sub S...etc.

Please keep us informed what the smart guys say.
Regards,
King "Kash" Jabba Labba

Submitted by King Jabba Labba on Mon, 04/11/2011 - 18:11

King Jabba Labba

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My quick answer with the only information provided is yes. Ther

My quick answer with the only information provided is yes. There are a few cases in which the answer would be no. Is the business still operating? Were there assets at the time of settlement?

Submitted by J L B on Tue, 04/12/2011 - 06:52

J L B

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I would go to a Tax Accountant immediately. And this is probably

I would go to a Tax Accountant immediately. And this is probably how you can get out of this mess. Show the borrowed CC money was for investments and it is a loss. Also your tax liabilities from the loss is greater than your asset value. Hence the the tax liability can be written off. This is one way you can write off the income from 1099-C

Submitted by on Mon, 05/02/2011 - 11:00

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