Discussion Archives:Discharge of Indebtedness - any exceptions

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Discussion Forum Index --> Advanced Tax Questions --> Discharge of Indebtedness - any exceptions

Discussion Forum Index --> Tax Questions --> Discharge of Indebtedness - any exceptions

Monroe2008 (talk|edits) said:

21 June 2011
We have a client who received a 1099c for cancellation of debt. The debt cancelled is includilbe in income unless an exception specifically applies....

Given these facts are there any possible exceptions...any help would be appreciated.

A husband and wife formed a corporation with the wife being the sole owner/sharehlder. The husband was employed by the corporation. The corporation went bankrupt. The personal assets of the spouses were also used as collateral. The bank issued the husband a 1099c for the business loan alleging he is personally liable.

He has nothing left other than his truck and the clothes on his back. He is collecting social security. Are there any exceptions to exclude the income from his gross income???

Kevinh5 (talk|edits) said:

21 June 2011
First, there's no need to post a duplicate question. I just deleted the duplicate.

Second, Why don't you list the possible exceptions, and in so doing, answer your own question? In other words, read the rules/tax law, then apply it to your client's situation. That's what a tax professional does. If you can't do that, you are no better than a consumer.

Go ahead, list the exceptions below. We'll wait for you to do this before making further comments.

(I note from viewing your posting history that you have never ever ever ever come back to add further information or comments to the various discussion's you've started. You ask a question, wait for an answer, then leave. A 'thank you' might have been in order for all of those previous questions you've asked that others have taken the time to research and answer for you. This time, a response is required before any further answers will be given. Please list the permitted exceptions, showing you have done some basic research. Or at least have read the form instructions.)

Kerryfreemanea (talk|edits) said:

21 June 2011
Kevinh5, I have not seen you this grumpy before, I like It 8-). You are correct. I little tax knowledge can go a long way and a few thanks yous can help bring faster and more complete results.

Kevinh5 (talk|edits) said:

21 June 2011
Don't be surprised if we learn that Monroe practices in Ohio. No offense meant to anyone, but that's my guess. I'd put money on it.

Ckenefick (talk|edits) said:

22 June 2011
Kevin5 is like a Tax Hawk, circling the TaxAlmanac Sphere. He slowly swoops down to investigate on occassion. If the question is mundane, he returns to his lair dissatisfied and uninterested. But once in a while, an intriguing question is posed, and Kevin gently swoops down with thoughtful analyis and insights - he hangs about for a while - posting helpfully a few more times, until he is confident that the poster has gotten what they came for.

But woe to the poster who hasn't checked the yellow box or done his homework. This is when Kevin5 is at his best. The intolerant Tax Hawk nose-dives into the forum at full throttle, without a care in the world, bearing down upon the "Tax Pro Reply to Discussion" box. Heart beating quickly, he scribbles an annoyed response, hits the delete button a few times to eliminate all cuss words, "saves his reply" and ascends to circle above once more...all the while muttering under his breath, in his bird-like squawk, "Yellow Box, Yellow Box."

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