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Are you asking what the IRS rules are on whether or not you have to pay income taxes on the amount of the forgiven debt?
I think that is what you are asking about...
Here is a link to the IRS's website that will answer all of your questions regarding debt forgiveness and 1099C's
Basically, it works like this: if you are insolvent according to IRS standards, then you don't have the claim the debt forgiveness as income on your tax return. Per IRS: insolvency = debts exceed assets.
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If I am correct, the cancellation of debt is only good until the end of 2012. I will be entering into the deed in lieu of forclosure within the next couple of weeks and am wondering if I would have time. I guess I would claim them on my 2012 taxes, but I can't do those until 2013, so would I still be clear?
I'm reffering to The Mortgage Forgiveness Debt Relief Act of 2007
The Mortgage Forgiveness Debt Relief Act of 2007 would apply in your situation in you can get the bank to forgive the debt this year.
Here is the IRS website that explains everything on this Act.
to answer your question, YES if the bank forgives the debt this year you would still be eligible even though you do not file your taxes until 2013.
this is because the debt was forgiven in 2012 which is the requirement.
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