On Dec 8, 2008, at 1:10 PM, Jordan Hayes wrote:
> The 'forgiveness of debt' is 'ordinary income' (so long as it isn't
> a 'non-recourse' loan, which most of these aren't) ... so, it's just
> like you "earned" it. Whoever you pay taxes to (federal, state,
> local) will see it as a 1099-C.
So the banks 'forgive' the debt, but the gov't doesn't ? My initial reaction is that the banks should be taking control of the gov't rather than the obverse. <g>
reactionarily, martin