[CLBS] moratorium on taxing debt forgiveness

[Thomas J. Angstman]

There are still exceptions, like if you are insolvent.  In some cases, like if you still own the property after the cancellation of debt, you must adjust your basis instead of pay tax:

https://www.irs.gov/publications/p4681/


T. J. Angstman
Angstman Johnson
3649 Lakeharbor Lane
Boise, Idaho 83703
208-384-8588
208-853-0117 (FAX)
 
tj at angstman.com
www.angstman.com
 


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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Catherine Dullea
Sent: Tuesday, March 22, 2016 10:52 AM
To: CLBS at admws.idaho.gov
Subject: [CLBS] moratorium on taxing debt forgiveness



Does anyone know if there is still any kind of moratorium with the IRS on taxing debt forgiveness as income?  I was under the impression it went the way of the dodo bird, but potential chapter 7 clients insist it still exists.

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