Can forgiven debt be taxed as income?

Say I owe $2000 and settle the amount with them for $1000. So would this reduction of $1000 be treated as taxable? What paperwork does the tax preparer need if this happen? Who is responsible for sending the form 1099c for this?
1 Answers

Ask Question

Waterfall approach to debt free ™

Legal debt relief methodology that works based on your financial conditions.Learn more »

  • expertise badge
  • This site is verified as a Trusted Site by Best of the Web
  • TrustLink logoTrustLink logo
  • Customer ratings on BBB
  • IAPDA logo
  • Calchamber Member
  • Calbar Registered
  • D&B
  • Godaddy
  • yelp logo