Internal Revenue Service United States Department of the Treasury
Level Basic Intermediate Advanced Military International

Cancellation of Debt (COD)

Introduction

Objectives

At the end of this course, using the resource materials, you will be able to:

  • Identify the difference between recourse and nonrecourse debt
  • Identify the exceptions and exclusions to the general rule for the cancellation of debt income
  • Determine when cancellation of debt for principle residence or credit card is within scope for the VITA/TCE program
  • Determine the filing requirements for recipients of Form 1099-A and Form 1099-C
  • Determine if a taxpayer may exclude from taxable income certain debt forgiven or canceled on their principal residence
  • Determine when canceled credit card debt is included in gross income on Form 1040

Estimated time to complete: 2 hours

Tip

Reviewing the hyperlinks contained in this course will enhance your understanding of the material.