Taxation of forgiven debt

[Capricious]

Signed by President.


http://tinyurl.com/2f64p9

 

[seacrestkristi]

So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence? Seems logical, I guess. What do you think?

 

[Matt J]

Wasn't this done for credit card debt that is written off?

 

[wrobert]

So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence? Seems logical, I guess. What do you think?

Does that not just seem an interesting way to avoid paying taxes?

 

[scooterbug44]

I thought the intent was that they just didn't tax the amount of debt forgiven as "income". So if you made a deal and got a lender/bank to forgive $200,000 in debt, it wasn't going to bite you at tax time as an additional $200k in income.

Not that the tax rules ever make sense :roll:.