View Single Post
Old 10-03-2007, 09:22 AM  
Kevin Marx
Confirmed User
 
Kevin Marx's Avatar
 
Join Date: Apr 2007
Location: Phoenix, AZ
Posts: 1,888
Just as an FYI.. no one touched on this.

When you settle a debt with an organization.. whatever debt is "written off" is considered a taxable asset against you.

Example... you owe AMEX 100,000. You settle with them for 40,000 (cool.. less money, right???).. You still are on the tax hook for the 60,000 that was written off by AMEX. The government considered that as taxable income to you.

Just thought you should know that part. And yes you will get a 1099 in the mail from AMEX or whomever at the end of the year for this situation. You can't avoid it.
__________________
ICQ: 370 037 008
Kevin Marx is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote