IRS Taxes Apply If Your Debt Is Cancelled, Here Are Exceptions

IRS Taxes Apply If Your Debt Is Cancelled, Here Are Exceptions

When a debt you owe is canceled or discharged, the tax code treats the wiped-out debt as cash income to you that you must report. If you owe $500,000 to the bank, but the bank forgives it, it’s as if the bank just handed you $500,000 so the IRS wants a cut. Fortunately, there are exceptions.

Author picture

You may also like

Hot News

TRENDING NEWS

SUBCRIBE

Lorem ipsum dolor sit amet con sectetur adipiscing

follow us

Photo

Discover more from entrepreneurs.news

Subscribe now to keep reading and get access to the full archive.

Continue reading