Submitted By: JL
Answered: July 16, 2013 8:30 am

Is all credit card debt that’s forgiven taxable?

Yes, if the credit card borrowing is for consumer purchases. There is no exemption from cancellation of debt (COD) income for personal borrowing other than a home mortgage if forgiveness is completed before the end of this year.

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Tax Glossary

Revocable trust

A trust that may be changed or terminated by its creator or another person. Such trusts do not provide an income tax savings to the creator.

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