Discussion:Cancellation of debt, joint insolvency

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Discussion Forum Index --> Basic Tax Questions --> Cancellation of debt, joint insolvency


Discussion Forum Index --> Tax Questions --> Cancellation of debt, joint insolvency

Ekcpa (talk|edits) said:

8 January 2013
If a credit card is in one persons name and files a joint return with his spouse. Are they required to be insolvent as a whole? if so would it pay to file as MFS.

Thanks

TOrahaCPA (talk|edits) said:

8 January 2013
Separately titled assets of married individuals: As mentioned earlier, each spouse is considered a taxpayer. Letter Ruling 8920019 said that when one spouse has COD income, the separately titled assets of his or her spouse are not included in the insolvency measurement, but (as in No. 6 above) the joint assets of the spouses are included.

http://www.aicpa.org/publications/taxadviser/2012/december/pages/clinic-story-01.aspx

Ekcpa (talk|edits) said:

8 January 2013
What a great article.

Thank you so much for the reference.

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