In a duel between a tax Form 1099 and a bankruptcy discharge, bankruptcy wins every time. The prize? no tax on debt discharged in bankruptcy. So, if you’ve already gotten your discharge, the creditor’s 1099, with your social security number on it, is no threat. But you do need to file another form to secure […]
Tax Trap When You Settle Debts Outside Of Bankruptcy
Trying to decide between bankruptcy and debt settlement as the better path to financial health? Own a home? Here’s the killer reason why bankruptcy alone protects you from a serious tax consequence down the road. Debt forgiven outside of bankruptcy gets deducted from the basis of your home. Result: more potentially taxable capital gains on […]
