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BWdem4life

(2,857 posts)

3. Cancellation of debt

Reply to Bayard (Reply #2)

Thu Nov 13, 2025, 11:53 AM

Thursday

Has always been taxable, but there's a convenient loophole for low-income people: "Insolvency."

The term simply means your debts at the time of the debt cancellation exceeded your assets. There's an insolvency worksheet to fill out.

This doesn't mean I approve of the expiring provision, just noting that the loophole exists.

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KS Toronado Bayard IbogaProject

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Highlight:

Student loan warning issued over potential tax of up to $10,000 [View all] BumRushDaShow Thursday OP

Rs way to offset that trillion dollar tax cut they gave billionaires. KS Toronado Thursday #1

The loans were either forgiven, or they weren't Bayard Thursday #2

Cancellation of debt BWdem4life Thursday #3

Insolvency is a financial condition; not a last alternative. Grins 3 hrs ago #7

That started awhile ago IbogaProject 11 hrs ago #6

GOP's doing their best to ensure colleges become privileged institutions again Torchlight Thursday #4

It's all about the cruelty radical noodle Thursday #5