The Mortgage Forgiveness Debt Relief Act of 2007 was enacted to help homeowners who restructured their loan. If a mortgage for your primary residence is cancelled or forgiven, you may be able to exclude that income from your year-end tax return. Read
If you had delinquent credit card accounts and negotiated a lower payoff amount, you are not necessarily in the clear. The portion of the debt that was forgiven may be reported as taxable income. There are a few ways of excluding forgiven credit card