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



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

  • Define cancellation of debt
  • Identify the difference between recourse and nonrecourse debt
  • Identify the exceptions and exclusions to the general rule for including canceled debt as income
  • Determine the requirements for the cancellation of debt on principal residence when preparing tax returns
  • Determine the filing requirements for recipients of foreclosures – Form 1099-A, Acquisition or Abandonment of Secured Property
  • Determine the filing requirements for recipients of Form 1099-C, Cancellation of Debt
  • Determine if a taxpayer may exclude from taxable income certain debt forgiven or canceled on their principal residence

Estimated time to complete: 1.5 hours


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