Penn
Yellow Jacket
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As you recall-- I filed chapter 7 bankruptcy this past Summer.
At issue now is a 1099-C form I got cancellation of debt, $12,395 (box 2) of that the interest $7707 box 3. (student loan)
My SSDI for 2013 was $9948.
I been reading, googling and I run into double -conflicting info. A few years ago- I was a day trader- mostly miners stock. I never filed. The IRS came down on me. So I had to go to an accountant- and bottom line, is once it was all itemized, I lost $2000. Happily the IRS did not fine or penalty me.
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http://www.irs.gov/taxtopics/tc431.html
In general, if you are liable for a debt that is canceled, forgiven, or discharged, you will receive a Form 1099-C
Debt Cancellations or Reductions that Qualifiy for EXCEPTION to Inclusion in Gross Income:
Amounts specifically excluded from income by law such as gifts, bequests, devises or inheritances
Cancellation of certain qualified student loans
Canceled debt, that if it were paid by a cash basis taxpayer, would be deductible
A qualified purchase price reduction given by a seller
Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program
Canceled Debt that Qualifies for EXCLUSION from Gross Income:
Debt canceled in a Title 11 bankruptcy case
Debt canceled during insolvency
Cancellation of qualified farm indebtedness
Cancellation of qualified real property business indebtedness
Cancellation of qualified principal residence indebtedness
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I dont know if there is a way to offset this.
In the past 2 months- I been selling a portion of my stack. I had hoped to replace it in July.
At issue now is a 1099-C form I got cancellation of debt, $12,395 (box 2) of that the interest $7707 box 3. (student loan)
My SSDI for 2013 was $9948.
I been reading, googling and I run into double -conflicting info. A few years ago- I was a day trader- mostly miners stock. I never filed. The IRS came down on me. So I had to go to an accountant- and bottom line, is once it was all itemized, I lost $2000. Happily the IRS did not fine or penalty me.
--------------------------------------------------------------
http://www.irs.gov/taxtopics/tc431.html
In general, if you are liable for a debt that is canceled, forgiven, or discharged, you will receive a Form 1099-C
Debt Cancellations or Reductions that Qualifiy for EXCEPTION to Inclusion in Gross Income:
Amounts specifically excluded from income by law such as gifts, bequests, devises or inheritances
Cancellation of certain qualified student loans
Canceled debt, that if it were paid by a cash basis taxpayer, would be deductible
A qualified purchase price reduction given by a seller
Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program
Canceled Debt that Qualifies for EXCLUSION from Gross Income:
Debt canceled in a Title 11 bankruptcy case
Debt canceled during insolvency
Cancellation of qualified farm indebtedness
Cancellation of qualified real property business indebtedness
Cancellation of qualified principal residence indebtedness
----------------------------------------------------------------------------
I dont know if there is a way to offset this.
In the past 2 months- I been selling a portion of my stack. I had hoped to replace it in July.