“Many of these “financial geniuses” out there never got current—ever.”
That’s true. They deferred forever.
My wife paid on her student loan and last month they automatically canceled the remaining $78k of her graduate school, including fees for licensure and years of internships. $78k, gone. Both parties keep increasing our taxes and the regulations that cost us money. For once, we actually got something significant. Nothing either party does benefits us.
Does the IRS consider that debt cancellation as income? Genuine question…because if my bank canceled the debt on my house the IRS would expect me to pay tax on that.