Hello, I'm Scott... My research can help you find honest & reputable debt relief companies. I've met with the companies I suggest to ensure they provide REAL solutions.Please explain how the $$$ saved can be taxable when it is not income? If I owe $50,000 and settle for $25,000, how can they tax the 25,000 saved when I have not claimed the 50,000 as an expense? What am I missing?
This is a great question and yes your logic is 100% correct however, the IRS rules say differently. The define the settlement savings as income and so they tax it. It’s unbelievable and unfortunate but true. I can only hope that the new Obama administration will review this because the number of people who are settling debts these days is tremendous.
