1099 C Cancellation of Debt Video

www.falconcreditmanagement.com 1099 C Cancellation of Debt or tax on forgiven debt information at Falcon Credit Management is one of a variety of debt management services we specialize in. Hi. I am Nevada Licensed Debt Adjuster Damian Falcone. In this video we will discuss something that can happen every time a debt is negotiated. This is commonly referred to as 1099 c cancellation of debt, tax on a forgiven debt or Discharge of Indebtedness. This is Get Settled – your source for consumer debt management information. As always, for even more information, go to www.falconcreditmanagement.com. The IRS views money received as “income”. In the situation where the money received is from a bank for a home loan or in the form of credit card purchases the taxable effect of the “income” is cancelled when you re-pay the loan or credit card. If you never repay the loan or credit card in their entirety the IRS views the amount you didn’t repay as income and taxes it accordingly. The process normally goes something like this: A debt is forgiven and a Discharge of Indebtedness occurs. The lender is required to report to the irs a form 1099 c cancellation of debt and to the borrower — The Lender should not and need not report forgiven past due interest and fees as discharge of indebtedness income, but some lenders do. In the event the lender does include amounts other than principal you should attach a statement to the tax return explaining the difference between the 1099 c …