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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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if i get a 1099 for forgiveness of indebtedness, do i have

Customer Question

if i get a 1099 for forgiveness of indebtedness, do i have to include assets outside the US for the insolvency calculation
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thanks you for using Just Answer. If you received Form 1099-C for assets forgiveness outside the U.S.A. the amounts must be reported on your federal tax return.
Customer: replied 8 years ago.
Thats not what i asked. please reread my question
Expert:  Marvin,EA replied 8 years ago.

I am sorry for the incorrect first respond. The insolvency exclusion calculation apply to all assets (assets owned in the U.S.A. and outside the USA) and all liabilities (liabilities in and outside the U.S.A) to determent the insolvency exclusion. The insolvency exclusion is the amount your total liabilities exceeded the fair market value of your total assets immediately before the discharge. You can read more about debt cancellation at

Customer: replied 8 years ago.
my question was not about "asset forgiveness"???? I t was about forgiveness of indebtedness and if the insolvency calcualtions needs to inlcude assets outside the U.S. I need to know what you are citing should you reanswer my question