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form 1099c box 6 code G

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Level 1
last updated ‎June 13, 2020 3:59 PM

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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Level 15
last updated ‎June 13, 2020 3:59 PM

https://fogelcpa.com/tax-articles

Dave's article on foreclosures/COD are the "bible" to which you should refer.

 

 

Former Chump... umm.... AllStar.
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Level 15
Level 15
last updated ‎June 13, 2020 3:59 PM

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?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Highlighted
Level 1
last updated ‎June 13, 2020 3:59 PM

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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Highlighted
Level 15
last updated ‎June 13, 2020 3:59 PM

https://fogelcpa.com/tax-articles

Dave's article on foreclosures/COD are the "bible" to which you should refer.

 

 

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

Highlighted
Level 1
last updated ‎June 13, 2020 3:59 PM

Thanks so much.

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Level 15
last updated ‎June 13, 2020 3:59 PM

YVW... he truly is a the guru of COD questions.

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches