1099C Issued... Help
I purchased a property for 2.7 Million in 2000. I assumed the debt of the previous owner which was ~2.3/4. Business and appraised value were significantly higher at the time of financing. After business slowdowns the new value of the property was around 2.1. The lender which was owed 2.29 discounted the mortgage to 1.4 and called it a day. I had in escrow with the lender at the time 265K and paid another 200K. But when the 1099 C was issued it states 800K. I was wondering if there is anyway of getting around this taxation. The business is an S Corp.
Forgiven debt is income to you or your business. No way around it in your case.