What about the taxes on forgiven debt?
Date: Sun, 01/25/2009 - 11:20
What about the taxes on forgiven debt?
If you are insolvent then you are in the clear. If not then tha
If you are insolvent then you are in the clear. If not then that means you have the means to pay the IRS.
I am interested in your question also. Because right now I am in
I am interested in your question also. Because right now I am insolvent, with more debt than assets. But as these accounts get settled, I will not be insolvent forever. *cringes* At least I will be for 2008. It is something I will ask my accountant. I have had the same guy since 1985, and he knows the big hole I've dug, inside and out.
Where can I find a copy of the insolvency rules/criteria? D
Where can I find a copy of the insolvency rules/criteria?
Does it include home equity? And at what point in time is this measured, pre-settlement, or post-settlement (or 12/31 year end)?
The day the debt was settled. Yes if you have equity in your ho
The day the debt was settled. Yes if you have equity in your house it is an assett. Add all assetts - all debts. In my case I owe 165000 on my house and the FMV is 125000 at best. Plus with all my credit card debt, cars, etc I am insolvent by like 100000.