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you can check on this www.irs.gov/individuals/article/0,,id=179414,00.html
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Tax debt is what type of debt to a company?
Tax debt refers to the tax paid on the amount of debt the company has outstanding still. This varies significantly by company and non-profits do not pay tax.
If your husband who died with no will had credit card debt in his name received 1099-C cancellation of debt must you list this income on tax return?
You must include all reportable income on the final tax return. Under section 61 of the Internal Revenue Code, forgiveness or discharge of indebtedness is gross income for tax purposes, so looks like that is what you need to do.
What companies provide relief for income tax debt?
There are no companies that offer debt from unpaid income tax or income tax debt. There are companies that can work with creditors and the government to negotiate a settlement and repayment schedule.
What are the options for settling a tax debt?
Settling your tax debt with the IRS depends on how much you owe, what the statues of limitations are on your liabilities, how your liability arose and what your ability to pay the IRS is. If you owe below $25,000 dollars you are elgible for an installment agreement. Above $25,000 or if you are not able to pay the instalment amount set by the IRS requires you to submit a financial disclosure form to prove to the IRS what you can pay. The time the IRS has to collect your liability has a lot to do with IRS collections as well as how the liability arose. As you can see it can be very complicated to resolve your tax debt with the IRS. Generally, the only way to settle a tax debt is to pay it off. Of course you can submit a lump-sum payment; but you can also apply for an installment agreement with IRS, which allows you make monthly payment for your tax liability. IRS also has a partial payment installment agreement, which combines a traditional installment agreement with an offer in compromise (OIC). You can call IRS or hire a tax professional to decide what is your best interest to settle a tax debt.
Where can one find information on dealing with a state tax debt?
Information on dealing with state tax debt, and the help that is available can be found on websites such as TaxDebtHelp or TotalTaxLawyer. As with any debt, it is always considered best to share any concerns that one may have.
Am I eligible for tax debt forgiveness?
It is possible but one can't know for sure without taking a look at your debt. You would have to consult with the IRS to find out your eligibility status.
Is it possible to get tax debt forgiveness?
It is possible, but not likely. If the IRS started doing that too much, the government would not be able to keep the nation running.
What are facts on mortgage debt forgiveness?
If a debt is cancelled by a mortgage company one may still have to pay tax on that amount. If the debt was an income on a main home then one may be able to have this excluded from tax payments although the maximum amount is $2 million. One can find further information on the IRS website.
Does capital gains tax apply if parent adds children to title of property?
Assuming the children did not pay for the property (whether in cash, goods, services, assumption of debt), capital gains tax does not apply. Gift tax may apply. However, when the property is sold, the children may owe a capital gains tax.
How can one reduce their tax debt?
There are many ways one can reduce tax debt. One can reduce their tax debt by hiring a tax professional, re-checking tax returns, and choosing a debt plan.
Tax debt is what type of debt to a company?
Tax debt refers to the tax paid on the amount of debt the company has outstanding still. This varies significantly by company and non-profits do not pay tax.
If your husband who died with no will had credit card debt in his name received 1099-C cancellation of debt must you list this income on tax return?
You must include all reportable income on the final tax return. Under section 61 of the Internal Revenue Code, forgiveness or discharge of indebtedness is gross income for tax purposes, so looks like that is what you need to do.
Where can I get more information about tax debt settlements?
You can get information about tax debt settlements from the IRS.
Are there any finance companies that specialize in offering tax debt loans?
There is no company that specializes in tax debt loans. Loansstore.com offers tax debt help. They also offer personal loans that could be used to pay off tax debt.
What are IRS tax implications on repossessed property?
That would depend on many factors. My answer will assume that the property is a personal residence. If it was repossessed, it is logical to assume that the debt you owed on the property exceeded the value of the home on today's market. The only potential tax consequence would be based on the amount of debt forgiven. This amount wold be the amount you owed less the amount the bank nets from the sale of the property. Generally, people who lose property in the manner are insolvent, that is, their total indebtedness exceeds the total fair market value of everything they own. The tax code specifies that if a taxpayer is insolvent both before and after a certain amount of his debt is forgiven, the forgiveness of debt does not create taxable income. If the taxpayer is solvent before and after the event that triggered the foregiveness of debt, the amount of debt forgiven would be ordinary income to the taxpayer in the year of repossession. If the amount of debt forgiveness creates solvency, the amount that is included in taxable income is the lesser of the debt forgiveness or the amount of the solvency. For example. If before the repossession, your debts exceeds your assets by $100,000, and after repossession and related debt foregiveness your assets exceed your debts by $50,000, your taxable income for that year would increase by the lesser of the amount of debt foregiveness or $50,000. Note: this post may or may not consider recent tax legislation and tax court decisions. Please consult a local CPA.
Distinguish between debt forgiveness and debt retirement?
Debt retirement refers to the paying off of a debt in order to avoid future interest payments, this can only be done if the current funds available are able to clear the outstanding balance of the debt. Debt forgiveness on the other hand can be considered to be an amnesty by lending institution for countries who are heavily indebted, this is usually done to help alleviate the debt burden faced by such countries. Therefore the difference between debt retirement and debt forgiveness is that one is paid off by the country who is able to pay off the debt and the other is an amnesty given to remove the debt for countries who cannot afford to pay it off.
What is after cost of debt?
The after-tax cost of debt is predominantly based on marginal pretax costs, as well as marginal or statutory tax rates.
