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DEBT FORGIVEN

  • 1.  DEBT FORGIVEN

    Posted 30 days ago
    A CLIENT RECEIVED A FORM 1099C FOR DEBT FORGIVEN ON A PRINCIPAL RESIDENCE..  I COMPLETED A FORM 982.  IS THIS EVENT TAXABLE FOR TAX YEAR 2017?

    THANK YOU

    ------------------------------
    Harvey Beringer BS
    HARVEY GLENN BERINGER, CPA MBA
    Bayside NY
    ------------------------------


  • 2.  RE: DEBT FORGIVEN

    Posted 28 days ago

    I think not,   but the basis of the property must be reduced. At least as I understand it.

     

    Then the debt which has been forgiven is the proceeds of the sale.  The may produce a gain .  they may very well meet the eligibility for the exclusion.

     

    But the forgiveness of debt on a principal is not taxable .

     

     

    All comments welcome

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )