Discussion:Debt relief fee
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| Revision as of 01:06, 12 April 2009 CrowJD (Talk | contribs) ← Previous diff |
Revision as of 01:16, 12 April 2009 Jdugancpa (Talk | contribs) (Be happy to, Cro) Next diff → |
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| I would guess that a judge would hold that the primary purpose of the advice was to reduce the debt, and that the generation of income was a necessary nuisance. No one wants to generate this kind of income.}} | I would guess that a judge would hold that the primary purpose of the advice was to reduce the debt, and that the generation of income was a necessary nuisance. No one wants to generate this kind of income.}} | ||
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| + | {{ForumReplyPost|UserID=Jdugancpa|Date=12 April 2009|Text=Be happy to, Crow. Loan me $100 and then hit me with the 1099-c. I'll be happy to pay the gov't its fair share.}} | ||
Revision as of 01:16, 12 April 2009
Discussion Forum Index --> Basic Tax Questions --> Debt relief fee
Discussion Forum Index --> Tax Questions --> Debt relief fee
| 11 April 2009 | |
| Have a client that used a debt relief company to consolidate their debt. They paid a fee to the company, would this fee be tax deductible? | |
| 11 April 2009 | |
| That's what I am thinking....client asked if it would be, so I am checking. | |
| 12 April 2009 | |
| Actually, having thought it over why wouldnt it be... the fee produced income (debt relief). WHy wouldnt the fee be considered investment expense subject to 2%? Investment fees paid are deductible if they are paid in an attempt to generate income. THe debt consolidation company created income by getting debt relief. | |
| 12 April 2009 | |
| Taxking, you are seeing the big picture, but only judges can do that.
I'd take a look at the statutory language very carefully, and give the words their dictionary interpretation (narrow). Maybe there are some TC cases that have dealt with the definition of investment. I would guess that a judge would hold that the primary purpose of the advice was to reduce the debt, and that the generation of income was a necessary nuisance. No one wants to generate this kind of income. | |
| 12 April 2009 | |
| Be happy to, Crow. Loan me $100 and then hit me with the 1099-c. I'll be happy to pay the gov't its fair share. | |
