Time May Be Running Out (Again) For Tax-free Treatment Of Home Mortgage Debt Forgiveness
Income tax generally applies to all forms of income, including cancellation-of-debt (COD) income. Because if a creditor forgives a debt, you avoid the expense of making the payments, which increases your net income. Fortunately, since 2007, homeowners have been allowed to exclude up to $2 million in cancellation-of-debt (COD) income ($1 million for married taxpayers […]
