Debt cancellation and your taxes

09/05/2017

On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.

someone cutting the string on a balloon that says debt

Did you have debt canceled during the year? If so, the amount of the canceled debt is taxable income. This occurs when there has been a home loan modification, foreclosure, credit card debt forgiveness, car repossession, etc.

Please call this office for further details.


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