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If the debt was recourse debt and the identifiable event code used in box 6 is G does that make the cancelled debt non taxable?
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so we have to dig out a 1099C form to see what box 6 and code G mean?
So Code G means they decided to (or their policy was) to stop trying to collect and canceled the debt...that has nothing to do with whether its taxable or not.
What was the debt for?
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The debt was a line of credit that was secured by principal residence which was abandoned. The line of cred was not used to improve the home. Not sure if that matters.
Event Code G - Code G — Decision or policy to discontinue collection. Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. For purposes of this identifiable event, a defined policy includes both a written policy and the creditor's established business practice.
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https://fogelcpa.com/tax-articles
Dave's article on foreclosures/COD are the "bible" to which you should refer.
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Thanks so much.
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YVW... he truly is a the guru of COD questions.
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if box 6 of 1099 has code G foe credit card debt cancellation is the cancelled amount taxable
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credit card debr
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Thanks.
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