Income tax on debt relief

If you are personally liable for a debt, and that debt is canceled or forgiven, you must include the canceled debt as taxable income on your income tax return. Will you have to pay taxes on this income?

You’ll find answers to this and other important questions when you read my new article titled Tax Tips: Income Tax on Debt Relief.

Three ways our fact-filled article can help you:

1. We’ll explain how the income tax applies to canceled and restructured debt. It’s a fact. Debt relief generally results in taxable income, although there are exceptions to immediate and even long-term taxation. Get the whole story when you read the full article.
2. We’ll explain the “Insolvency Deferral.” It’s important to understand this concept and we’ll make it crystal-clear when you read the full article.
3. We’ll tell you how to alter or defer certain tax consequences. In fact we’ll outline seven ways you can reduce tax attributes when you read the full article.