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?
Best Answer Click here
This discussion has been locked. No new contributions can be made. You may start a new discussion here
https://fogelcpa.com/tax-articles
Dave's article on foreclosures/COD are the "bible" to which you should refer.
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?
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.
https://fogelcpa.com/tax-articles
Dave's article on foreclosures/COD are the "bible" to which you should refer.
Thanks so much.
YVW... he truly is a the guru of COD questions.
if box 6 of 1099 has code G foe credit card debt cancellation is the cancelled amount taxable
credit card debr
You seem to be lost on the internet.
You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.
Thanks.
You have clicked a link to a site outside of the ProConnect Community. By clicking "Continue", you will leave the Community and be taken to that site instead.