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Taxation of forgiven debt
- Thread starter Capricious
- Start date
seacrestkristi
Beach Fanatic
So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence? 
Seems logical, I guess. 
What do you think?
Seems logical, I guess. What do you think?
wrobert
Beach Fanatic
So people now don't have to pay taxes on the amount that was forgiven if it was their primary residence?
Does that not just seem an interesting way to avoid paying taxes?
scooterbug44
SoWal Expert
I thought the intent was that they just didn't tax the amount of debt forgiven as "income". So if you made a deal and got a lender/bank to forgive $200,000 in debt, it wasn't going to bite you at tax time as an additional $200k in income.
Not that the tax rules ever make sense :roll:.
Not that the tax rules ever make sense :roll:.