http://asklizweston.com/2010/04/12/credit-card-forgiveness-results-in-a-big-tax-bill/ Personal Finance Columnist Tue, 22 May 2012 17:44:58 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://asklizweston.com/2010/04/12/credit-card-forgiveness-results-in-a-big-tax-bill/comment-page-1/#comment-1481 lizweston Mon, 19 Apr 2010 16:12:31 +0000 http://asklizweston.com/?p=1924#comment-1481 When you're contesting your liability for a debt, it's typically not counted as forgiven debt and income to you. It's when you negotiate a settlement for a debt you've already incurred that this becomes an issue. Check with a tax pro to make sure, though. When you’re contesting your liability for a debt, it’s typically not counted as forgiven debt and income to you. It’s when you negotiate a settlement for a debt you’ve already incurred that this becomes an issue. Check with a tax pro to make sure, though.

]]> http://asklizweston.com/2010/04/12/credit-card-forgiveness-results-in-a-big-tax-bill/comment-page-1/#comment-1480 Dan Mon, 19 Apr 2010 04:35:45 +0000 http://asklizweston.com/?p=1924#comment-1480 This is the first I've heard about forgiven debt becoming "income." I owe a lawyer and we're in dispute about how much. You're saying whatever I get him to "forgive" I actually have to pay taxes for that? If so, this is truly money from nothing. Please explain further. Thanks! This is the first I’ve heard about forgiven debt becoming “income.” I owe a lawyer and we’re in dispute about how much. You’re saying whatever I get him to “forgive” I actually have to pay taxes for that? If so, this is truly money from nothing. Please explain further. Thanks!

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