Something is wrong with how this is being interpreted. Can you clarify for me? This drastically changes my income and tax liability.
The IRS example for canceling debt is about a boat. It says that the boat's FMV comes off of the debt. Why isn't a timeshare considered for its FMV? They took back the timeshare, so it is a "thing," and they will sell it again for more than I owe. It seems like a ticket to an event that hasn't happened. I bought it and returned it to you. Now, you are selling it to someone else. You have lost nothing, but I lost all of the previous payments I made. I should keep the (item) timeshare if the debt is truly canceled, but that isn't what happened. They take back the goods, resell them, and then send me a canceled debt that I have to claim as income.
This seems so wrong. All benefit to the seller over and over again, no matter how many times they resell the item. I get nothing, but am fully liable as if I did?
