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On form 1099 c, cancellation of debt, do I pay taxes on the full amount in box 2 or on the amount after subtracting the fair market value of the property in box 7?
The property was also rental property. And the identifiable event code is G - decision or policy to discontinue collection
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June 3, 2019
10:51 AM
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Retirement tax questions
If property that is repossessed
or foreclosed on secures a debt for
which you are personally liable (recourse debt),
you generally must report as ordinary income
the amount by which the canceled debt is more
than the fair market value of the property. Report the income from cancellation of a debt
related to a rental activity as rental income.
June 3, 2019
10:51 AM