i just called my credit card co.and offered a pay-off. i was told that if they took a pay-pff lower than the balance on my card that i would have to pay taxes on the difference at the end of the year. this sounds like a line just to keep me paying the finance charges.can anyone tell me if this is true?
Any debt not discharged by bankcrupcy is considered taxable income.Look at it this way if you loan 5,000 and do not pay it back then it becomes taxable income because you did not repay the loan and received 5,000 in income.
