“Primer: When Cancellation of Debt
(COD) Income Can Be Tax-Free”
To get my complete article
with all the details…
Too many people are in debt and even more will likely become indebted as we possibly dip into a recession.
A quick look at debt cancellation
While the general federal income-tax rule states that cancellation of debt (COD) income is taxable, there are a good number of exceptions that grant tax-free treatment.
NOTE: Special rules apply to partnerships, LLCs treated
as partnerships for federal income tax purposes, and S
corporations.
So how do you take advantage
of the debt cancellation?
That’s the subject of my new article which covers:
- Understanding the valuable insolvency exception
- How the useful exceptions grant tax-free treatment to eligible borrowers
- When lenders should report COD income to borrowers and the IRS
- How to reduce tax attributes after benefitting from the bankruptcy or insolvency exception
- How to use the principal residence mortgage debt exception
And much more
Yes. The rules governing COD are complicated and you need a guide to make things completely clear. That’s me.
To find out more in easy-to-understand language, …
CLICK HERE and read my completely new article titled:
“Primer: When Cancellation of Debt (COD)
Income Can Be Tax-Free”