Legal Question in Real Estate Law in Pennsylvania

Cancellation of Debt

Could you please explain to me in simplest terms what is 1099-C Form? Does this means that a debt has been written off? Thank You!


Asked on 2/11/08, 12:59 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Cancellation of Debt

You asked about a form 1099-C.

Creditors must send this form when a debt has been determined as uncollectable. Generally the amount on the form is then considered part of the debtor's income and the debtor is stuck paying taxes on the amount written off.

You should speak with your tax professional about this matter and how to deal with it on your taxes.

Regards,

Roger

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Answered on 2/11/08, 2:39 pm


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