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tina827
Employee
January 25, 2019
Question

Mortgage Loan

  • January 25, 2019
  • 1 reply
  • 0 views

My mortgage company recently reduced my principal balance and considered forgiveness since they made an error on my deferred principal balance.  Will I have to pay taxes on the amount of forgivness?

    1 reply

    P
    PaulaM
    Employee
    February 3, 2019

    Currently, Congress has not determined if this type of forgiveness will be excluded from taxes or not. If you received a 1099-C form, then enter in your return. You can amend later should Congress come to a decision.

     

    Is canceled or forgiven debt taxable?

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