[CLBS] moratorium on taxing debt forgiveness

[Marty Martelle]

https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/How-to-Avoid-Taxes-on-Canceled-Mortgage-Debt/INF12033.html

This is a  link to the Turbo Tax Site.  They show that the Relief Act has been extended.  Take it for what it is worth.  I have seen other articles that it has been extended into 2016, also,  but, we haven't had one this year.

Also, there is another way to remove 1099 -C  income, administratively through the IRS.  If the person was insolvent at the time of the forclosure or other forgiveness, they can file for relief with the IRS.  It is considerably more difficult this way, but we have done it on a number of occasions.  

Marty

Martin J. Martelle, Attorney
Martelle, Bratton and Associates
A BBB "A+" Rated Law Firm
Tel: 208-938-8500
Fax: 208-938-8503
www.martellelaw.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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