This book is for preparing 2021 taxes. Taxpayers may find themselves unable to repay home mortgages, credit card debt, or other personal or business loans. Foreclosures can sometimes be a solution to resolve debt in these situations. Naturally, this event is emotional for taxpayers and they look to their tax professional for guidance on how this affects their tax situation. When a foreclosure occurs, the result is a deemed sale of the property. If the creditor cancels the debt, the debtor may or may not have to recognize income. This textbook guides the tax professional through the rules of foreclosures, explains how to include or exclude income from debt cancellation on the debtor’s tax return and explores the effect of excluding canceled debt on the taxpayer’s other tax attributes. This book will help you prepare forms for the Form 1040.
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Item Number: 21338
Level: Basic
Authors: NATP Staff
Published: 2021
Format: Print - 70 Pages
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