Re: Cancellation of debt as income; exemptions

Cancellation of debt as income; exemptions

Wondering if there are any exceptions to the income reporting rules other than bankruptcy. As to insolvency, we couldn't file bankruptcy BUT my wife's terminal cancer diagnosis forced her into a disabled state and I am her full-time caregiver, so pretty close to "insolvent".

posted

Are you asking about exceptions to the rule for a 1099-C

See IRS publication https://www.irs.gov/taxtopics/tc431

or seek legal advice from your bankruptcy attorney.

Disclaimer: Not a tax professional. Information gathered from internet links. Anything dated in June 2019 was posted in prior years and is before the 2019 limits and changes.