i would get a good tax accountant first of all or a attorney that might know
this is what i learnd and the key is to prove you were insolvent at the time of settlement
if you have a debt of 20,000 and they settle for 5,000, then you have to claim 15,000 as taxable income.
but
Insolvency means that your debts exceed the value of your assets. To figure out whether or not you were insolvent, you will have to total up your assets and your debts, including the debt that was settled or written off.
then u do not have to claim it
look into it, and someone tell me if i am wrong
this is what i learnd and the key is to prove you were insolvent at the time of settlement
if you have a debt of 20,000 and they settle for 5,000, then you have to claim 15,000 as taxable income.
but
Insolvency means that your debts exceed the value of your assets. To figure out whether or not you were insolvent, you will have to total up your assets and your debts, including the debt that was settled or written off.
then u do not have to claim it
look into it, and someone tell me if i am wrong
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