Re: charge off- impact on taxes?
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Posted by Taziblue
(188.8.131.52) on June 04, 2004 at 11:17:54:
In Reply to: charge off- impact on taxes? posted by anon on June 04, 2004 at 02:55:40:
If they issue a 1099C, which is forgiveness of debt, you will have to include that as income on your tax return for that year.
The good news is that the 1099c closes the file for good and you will not be hounded by cas collecting on debt purchased for pennies on the dollar.
The other news is that you will probably be able to avoid paying taxes if you are insolvent at the time of the debt forgiveness (that year).
see WhyChats website for more details on the 1099c.
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