Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. This article discusses issues relating to debts that are forgiven, negotiated down or forgiven. 

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Your tax advisor at Sharrard, McGee & Co., PA can help you determine how to include a forgiven or canceled debt in your tax planning. Call us at (336) 884-0410 in High Point or (336) 272-9777 in Greensboro.