Debt

Cancellation of Debt — Insolvency

2017-11-13T18:57:43+00:00

Taxpayers with cancelled debt can often exclude the cancellation of debt income to the extent they were insolvent immediately before the cancellation. If a cancelled debt is excluded from income, it is nontaxable. Cancellation of Debt Cancellation of debt (COD) is settlement of a debt for less than the amount owed. A debt may be cancelled by a lender voluntarily or through bankruptcy or other legal proceedings and may result [...]

Cancellation of Debt — Insolvency2017-11-13T18:57:43+00:00