An Introduction to the Tax Impact of Cancellation of ...
Cancellation or Reduction of Debt. A creditor may agree to a full or partial cancellation of the debt (“COD”). Whether a creditor has actually discharged a debt is a factual determination. The issuance of a Form 1099-C (Cancellation of Debt) is an identifiable factor but is not necessarily dispositive of an intent to cancel debt. ................
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