Debt cancellation in Box 2 of Form 1099-C automatically becomes Taxable Income on Line 21 of Form 1040. However, you can file Form 982, and you may not have to pay taxes. This form became popular for us during the recession. It eliminated the otherwise taxable amount for cancellation of debt. Unfortunately, we still see lots of cancelled debt in 2016. That’s... continue reading →
The Financial Accounting Standards Board (FASB) recently issued new guidance that standardizes when and how every type of company must recognize revenue. The guidance is found in Accounting Standards Update (ASU) No. 2014-09. It relates to Revenue from Contracts with Customers. Further, it supersedes existing revenue recognition rules and makes significant changes to the rules for accounting for real... continue reading →