by Audrey ArlissMarch 21, 2012
Lessening the misery as a result of too much debt can be solved by filing form 982 bankruptcy. Through this action the IRS cannot tax the debtor because debt to income is considered non-taxable.
Newark, New Jersey – Lessening the misery as a result of too much debt can be solved by filing form 982 bankruptcy. Through this action the IRS cannot tax the debtor because debt to income is considered non-taxable. Debt Insolvency offers the most detailed and updated information on debt relief and restructuring to help those experiencing insolvency, bankruptcy and foreclosure problems.
A lot of people nowadays are being sent 1099-C to settle individual debts or debt consolidation. Upon receiving this form, make sure qualification is adequate in case one applies for IRS Form 982 to reduce the taxable income from cancelled debt. Checking box 1a means a discharge of indebtedness. The amount discharged for bankruptcy is recorded on line 2a and should only be listed on line 10a if one likes to retain non-depreciable assets and if the amount is above the remaining debt after the bankruptcy discharge.
One other circumstance that the debtor can be charged by the taxman is if form 982 short sale conditions were not met. A short sale occurs when an excess exists on the amount the debtor owes the creditor upon filing for bankruptcy. The excess is viewed by the IRS as ordinary taxable income unless off course the debtor applied for form 982. Debt insolvency provides helpful resources and valuable information on the entire bankruptcy process which can guide individuals on how to go about with their debts.
People with credit card problems are usually hounded by the IRS after settling their credit card debt. Forgiven credit card obligation is a taxable income under the law. However taxpayers may apply for exclusion so reduction on the taxable income from debt forgiveness is valid. Using form 982 credit card debt will lessen the burden of the debtor.
The exclusion comprises obligations discharged during filing of bankruptcy by insolvent credit card holders. These IRS forms help people with huge debts to manage their financial standing efficiently. Debt Insolvency offers an in-depth analysis and expert advice regarding credit card debt settlements to help consumers avoid being taxed on the forgiven debt. The website provides forms and links on debt relief with articles updated hourly. Helpful sections are available for users to check back frequently and refer to when in need of solutions on debt problems.
Debt Insolvency is a very good resource for tips and information on debt relief and insolvency. The site covers broad topics involving credit card debts, property foreclosures, short sales, and many more bankruptcy problems.
Francesca J. Phillips
2006 Beechwood Avenue
Newark, NJ 07102
News Source: http://www.free-press-release.com/news-form-982-bankruptcy-helps-restructure-debt-in-many-ways-1332334543.html
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