Explore the 1,000’s of tax questions answered by professionals.

Back to list

QUESTION DETAIL

Related User

Votes

If I filed Chapter 7, but it isn't discharged until march of next year, do I report the discharged debt on the current year's tax return or next years?


ANSWER


Expert Charles Markham's Answer:

 

 

First off, debts discharged in a bankrupcty are not taxable and can probably go un-reported.  However, to be strictly correct you could include them on IRS Form 982.  You would NOT include discharged debts until they are actually discharged--things can happen in a BK.  So, you would wait until 2013 to address this on your taxes.

Charles Markham, EA

Massachusetts

20+ yrs experience

  • Currently 5.0000/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
15 Ans.