[Community Tax co-founder Jacob Dayan]
Why do I have to pay taxes on a debt that’s been written off? And this is Taxing Questions.
Hi, I’m Jacob Dayan, CEO & Co-Founder of Community Tax
Your credit card might be plastic, but the company that issued it to you deals in paper. So, you can’t write off any cancellation of debt until the credit card company issues you a form called a Cancellation of Debt. This isn’t an uncommon situation, but it is a confusing one to many people.
In fact, if I’m asked to rate the difficulty of this topic on a scale from 1 to10, Cancellation of Debt is around a 7.
You might ask, why so high? Because the IRS and your credit card companies don’t advertise the solutions to your problem. And while they aren’t hiding them, either. Trying to figure out a Cancellation of Debt on your own is both time-consuming and confusing.
Having someone on your side, looking out for your best interests, can save you thousands of dollars. If you call Debt.com, you can consult with myself or a member of my team right away.