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Discussion Forum Index --> Tax Questions --> New Jersey Cancellation of Debt
HPTAX (talk|edits) said:
| 14 April 2006
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| Is the cancellation of debt (Personal Credit Card) taxable as Gross Income in the state of New Jersey?
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AJS (talk|edits) said:
| 14 April 2006
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| If TP has received 1099C then in the Fed return it is to be taxed for sure. Usually it goes to the state return too but sombody doing taxes in New Jersey should answer this!!!
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Dennis (talk|edits) said:
| 14 April 2006
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| The problem is that New Jersey has this specific list of what income is subject to tax in their instructions and COD is not on it.
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HPTAX (talk|edits) said:
| 14 April 2006
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| That's the problem...and just my luck, the tax division took the day off today.
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Riley2 (talk|edits) said:
| 15 April 2006
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| I believe that the New Jersey Tax Court ruled in 2000 that COD income is not includible for purposes of the New Jersey gross income tax. However, any portion of the debt that was satisfied by sale or exchange of property would be includible.
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HPTAX (talk|edits) said:
| 15 April 2006
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| I called up the Tax Division today 4/15. They confirmed that the COD is not taxable according to the memo they got......
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Dennis (talk|edits) said:
| 15 April 2006
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| Does Riley get credit for three points for scoring from 3,000 miles?
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HPTAX (talk|edits) said:
| 15 April 2006
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| I give him 6 and the PAT. NJ should hire Riley to write/right their regs.
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