Getting Gone Tax Debts In Bankruptcy: Difference between revisions

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Revision as of 15:38, 15 September 2026


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Effect of the 1099 relating to your personal situation will vary depending on what kind of entity the borrower is (C-Corp, kontol S-Corp, LLC, etc). Most CPAs will able to to let you know that a 1099 would manifest itself. Now we calculate if you find any taxes due. Assuming for one time that not one other income exists, we calculate taxable income by taking the benefit from the business ($20,000) and subtract regular deduction (which is $5,950 for 2012) less the exemption deduction (which is $3,800 for 2012).

The taxable income would then be $20,000 - $5,950 - $3,800 which equals $10,250.

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