Why cancellation of debt counts as taxable income

Name: Why cancellation of debt counts as taxable income
Duration: 64 s
Description: Debt forgiven by creditors like credit cards is taxable because you already received the goods you bought.

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Got a 1099-C after a creditor wrote off what you owed? TJ explains why the IRS treats forgiven debt as taxable income — you already received the goods or services, so walking away without paying triggers a tax bill. He also warns what can happen if you just ignore it.

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