A Reputation Of Taxes - Part 1: Difference between revisions
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Revision as of 08:20, 12 November 2024
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In the above scenario, that you have to saved $7,500, but the government considers it income. If your amount is over $600, then a creditor is required to send you a form 1099-C. How has it been income? The government considers "debt forgiveness" as income. How exactly can you obtain out of growing your taxable income base by $7,500 this kind of settlement?
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