Reply #48

In the discussion thread: OWS to Buy, Forgive Distressed Consumer Debt [View all]

Fri Nov 9, 2012, 12:48 PM

Ms. Toad (9,026 posts)

48. It might be able to be structured as a gift.

Which is excluded from income.

If it can't be excluded from income, depending on the size of the debt, and the income level of the debtor, it may not result in any taxable income. And, the new owner of the debt might also be able to spread the cancellation out over a number of years to minimize the impact.

But it is a good question. Sometimes good intentions have unintended consequences.

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164 replies	Author	Time	Post
OWS to Buy, Forgive Distressed Consumer Debt [View all]	bigtree	Nov 2012	OP
I love it. Helps those in need and strips some of the power away from	Live and Learn	Nov 2012	#1
Thinking outside of the box like this	Generic Other	Nov 2012	#2
Where da recs?	Leopolds Ghost	Nov 2012	#3
Du rec. Nt	xchrom	Nov 2012	#4
Occupy is amazing!	Cracklin Charlie	Nov 2012	#5
Oh, that is AWESOME!!!!!!	djean111	Nov 2012	#6
Way cool.	99Forever	Nov 2012	#7
This needs to spread like	Le Taz Hot	Nov 2012	#8
K&R This is a model for success. Hopefully it will catch on and rich people will start funding it.	Egalitarian Thug	Nov 2012	#9
K&R Support OWS.	woo me with science	Nov 2012	#10
This sounds useful.	randome	Nov 2012	#11
Sort of like KIVA	dixiegrrrrl	Nov 2012	#83
HUGE. Kick!!	navarth	Nov 2012	#12
This will put the debt-collection thugs out of business - best idea ever.	reformist2	Nov 2012	#13
rec!	SammyWinstonJack	Nov 2012	#14
I they forgive the debt, do the debtors have to pay income tax on the amount forgiven?	djean111	Nov 2012	#15
"Canceled Debt – Is It Taxable or Not?"	PoliticAverse	Nov 2012	#25
Then don't cancel the debt.	Sophiegirl	Nov 2012	#42
Sounds like a good idea if possible.	randome	Nov 2012	#46
I think it'd have to be $1.00 at a minimum.	TahitiNut	Nov 2012	#106
We could revive	Doc Holliday	Nov 2012	#156
Quitclams and releases still employ that language, as far as I know.	TahitiNut	Nov 2012	#158
If they are smart, they would not do it	AlexSatan	Nov 2012	#159
It might be able to be structured as a gift.	Ms. Toad	Nov 2012	#48
<$10,000/year	joeunderdog	Nov 2012	#139
Please pass this on to:	tavalon	Nov 2012	#146
I really wish I could afford, well maybe	DiverDave	Nov 2012	#152
It isn't accurate information	Ms. Toad	Nov 2012	#163
It's not quite that simple	Ms. Toad	Nov 2012	#162
Canceled Debts.... for any of the following exceptions or exclusions are not taxable"	dixiegrrrrl	Nov 2012	#71
Wow. This is one of the best grassroots ideas I've heard in a very long time.	distantearlywarning	Nov 2012	#16
I would too,	onethatcares	Nov 2012	#18
http://rollingjubilee.org/	tavalon	Nov 2012	#147
K&R. Publsihed to my Facebook network this a.m. One question: who decides	coalition_unwilling	Nov 2012	#17
excellent...	handmade34	Nov 2012	#19
Good to see they're finally doing something worthwhile...	SidDithers	Nov 2012	#20
You might want to check out the amazing work they are doing --	Hell Hath No Fury	Nov 2012	#55
+1!	dchill	Nov 2012	#65
Yep. Once again, the MSM lies spread far and wide to discredit progressives.	Dark n Stormy Knight	Nov 2012	#94
Don't mind Sid.	Scootaloo	Nov 2012	#143
.	Luminous Animal	Nov 2012	#109
Damn do-gooder liberals.	UnrepentantLiberal	Nov 2012	#128
Yo, Sid,	tavalon	Nov 2012	#148
K&R nt	TBF	Nov 2012	#21
That's an amazing idea.	groundloop	Nov 2012	#22
bump.	silvershadow	Nov 2012	#23
Donation link found!	AllyCat	Nov 2012	#24
by that calc, I just forgave $10,000 in debt! WHOOPEEE!!!	Kip Humphrey	Nov 2012	#53
Yeah! Wish I had that much to give, but think I'll	AllyCat	Nov 2012	#72
THANKS for finding/posting the link!	dangerdoll	Nov 2012	#63
!	AllyCat	Nov 2012	#73
Bookmarked	Kaleva	Nov 2012	#77
Kick! Thanks for posting this, AllyCat!	calimary	Nov 2012	#98
DAMN! That felt GOOD!!	TahitiNut	Nov 2012	#107
Excellent! Though I do wonder...	Bibliovore	Nov 2012	#130
This is a wonderful idea...	one_voice	Nov 2012	#133
Thanks! I love this idea!	myrna minx	Nov 2012	#155
The people of OWS are AWESOME! They are tenacious, caring, determined, smart and love this country	judesedit	Nov 2012	#26
Wow - that's perfect.	Lucy Goosey	Nov 2012	#27
Whoohoo! K&R!	Fire Walk With Me	Nov 2012	#28
OWS	SamKnause	Nov 2012	#29
Sounds good ...	1StrongBlackMan	Nov 2012	#30
You can buy debt sometimes pennies on the dollar......	AnneD	Nov 2012	#31
donation link above and at second OP embedded link.	AllyCat	Nov 2012	#33
I was just looking at it.....	AnneD	Nov 2012	#36
Oh, I didn't know about People's Bank. Not sure I have that kind of cash, but	AllyCat	Nov 2012	#37
"The People's bank"---Are you talking about the Lending Club?	dixiegrrrrl	Nov 2012	#84
And with this single action	Downtown Hound	Nov 2012	#32
Great heavenly days. What a tremendous idea!!	efhmc	Nov 2012	#34
This is incredible!	liberalmuse	Nov 2012	#35
Robin hood! how beautifully genius!	robinlynne	Nov 2012	#38
This is another earthshatteringly brilliant idea by OWS. K&R	stevenleser	Nov 2012	#39
It's neither 'earthshattering' nor 'brilliant'. It is, however, a 'great' idea.	randome	Nov 2012	#86
Your concern over my degree of enthusiasm is noted.	stevenleser	Nov 2012	#108
It is BOTH earthshattering & brilliant!	LeftofObama	Nov 2012	#117
It IS a fantastic idea, and I am very excited about it.	stevenleser	Nov 2012	#161
Hypberbole does not help dismiss the organizations you have always wanted to dismiss.	sabrina 1	Nov 2012	#127
interesting	heaven05	Nov 2012	#40
HUGE K & R !!!	WillyT	Nov 2012	#41
I have $500	Sophiegirl	Nov 2012	#43
What a clever, incredible idea!	Barack_America	Nov 2012	#44
Love love love OWS, they are da bomb!!	lark	Nov 2012	#45
I think that's great. Possibly the most constructive thing I've heard from OWS. nt	msanthrope	Nov 2012	#47
They should do a big holiday push.	Barack_America	Nov 2012	#49
kick and rec!	lunatica	Nov 2012	#50
K&R	Magoo48	Nov 2012	#51
So what would happen if a person bought their own debt for pennies on the dollar???	ret5hd	Nov 2012	#52
This....	Buddyblazon	Nov 2012	#54
You'll have to default on them (and trash your credit) first.	Barack_America	Nov 2012	#74
I paid off my student loan for 10 cents on the dollar.	dixiegrrrrl	Nov 2012	#85
Don't forget the system is rigged for the other side!	airplaneman	Nov 2012	#67
actual solutions to real problems...	lame54	Nov 2012	#56
kick	BillyJack	Nov 2012	#57
Bravo! n/t	ohheckyeah	Nov 2012	#58
I don't get it	demhottie	Nov 2012	#59
Debt can be sold again and again --	Hell Hath No Fury	Nov 2012	#60
Exactly - the benefit is you are no longer afraid to answer the phone.	jwirr	Nov 2012	#80
I can't even imagine...	OneGrassRoot	Nov 2012	#100
People will be able to move on with their lives. It's a big deal.	reformist2	Nov 2012	#66
Don't forget	robbob	Nov 2012	#81
Good questions. Thanks.	randome	Nov 2012	#82
Well, honestly, what you are apparently missing here is an understanding of	Zorra	Nov 2012	#115
Zorra, you nailed it - it's truly a soul-sucking experience to be mired in debt.	groundloop	Nov 2012	#119
But will they know?	druidity33	Nov 2012	#124
the original creditor may have written off the debt	dlwickham	Nov 2012	#134
Now that's productive activism--very well done. nt	MADem	Nov 2012	#61
Sort of like the non-government version	adieu	Nov 2012	#62
wow this is reverse capitalism !	airplaneman	Nov 2012	#64
Now, THIS is a Revolutionary Idea!	yellerpup	Nov 2012	#68
We're trying. Thanks bigtree.	mmonk	Nov 2012	#69
Rec'd! A very interesting idea.	Kaleva	Nov 2012	#70
OWS changed everything and keeps on truckin!!!	EarthGurl2012	Nov 2012	#75
This is the best stimulus package I have seen in this whole mess. I am one of those distressed	jwirr	Nov 2012	#76
This is BRILLIANT!	JNelson6563	Nov 2012	#78
My world would change if they bought my student loan off....	glinda	Nov 2012	#79
Me too-	solara	Nov 2012	#120
excused debt	dexter76	Nov 2012	#87
Did you voluntarily create medical debt? Are you going to create more?	uppityperson	Nov 2012	#88
excused debt	dexter76	Nov 2012	#91
I think you missed the part about student loan debt and NOT FINDING A JOB!	AllyCat	Nov 2012	#122
Stuff happens	footinmouth	Nov 2012	#89
excused debt	dexter76	Nov 2012	#92
No one here but us takers.	myrna minx	Nov 2012	#97
perhaps we could proclaim	azurnoir	Nov 2012	#103
The only ones in our society getting a free ride	Tsiyu	Nov 2012	#112
Welcome to DU!!!	tomm2thumbs	Nov 2012	#114
By the time your debt gets cheap, you've already been screwed to the equator and back n/t	Mopar151	Nov 2012	#144
"Posting privileges revoked"	TahitiNut	Nov 2012	#110
Force multipliers	mick063	Nov 2012	#90
Off Topic	eridani	Nov 2012	#105
The only one avaiable from DU	mick063	Nov 2012	#118
So what's to stop me from setting up a shell corporation, racking up a bunch of personal debt	ChillZilla	Nov 2012	#93
No it is not that simple.	djean111	Nov 2012	#102
K&R	TheUnspeakable	Nov 2012	#95
Cool. This is great for collection agencies, brings them some revenue they might not	jtuck004	Nov 2012	#96
They don't pay off debt by choosing individuals.	djean111	Nov 2012	#99
If we just step back and look at this as helping the country full of citizens,	djean111	Nov 2012	#101
Wow, this is a FANTASTIC idea.	Doremus	Nov 2012	#104
woot. yes we can.	limpyhobbler	Nov 2012	#111
Wow, that's an amazing trick. Beat them at their own game. I like it!!	johnnyrocket	Nov 2012	#113
there are no words of love from me for them that are big enough	roguevalley	Nov 2012	#116
OWS I Love YOUS!	undergroundpanther	Nov 2012	#121
This is very cool ...	aggiesal	Nov 2012	#123
THAT! IS BRILLIANT	Matariki	Nov 2012	#125
This is almost to good to be true.	Auntie Bush	Nov 2012	#126
Very big. Go OWS	Politicub	Nov 2012	#129
Now that is just fucking awesome!	lonestarnot	Nov 2012	#131
What a great cause!	silverweb	Nov 2012	#132
This just gave me an AWESOME idea	JonathanBrowne	Nov 2012	#135
The haggle-I think you have a really great idea...	DianaForRussFeingold	Nov 2012	#142
If you do it like that they are "settling" for a lesser amount	djean111	Nov 2012	#164
Excellent!	GrannyK	Nov 2012	#136
What a great idea!	Change has come	Nov 2012	#137
huh. I had an outstanding debt disappear from my credit report last week...	bunnies	Nov 2012	#138
Sometimes it depends upon the State Laws and how long the debt has been or	glinda	Nov 2012	#140
This is amazing and it gives me hope	Tree-Hugger	Nov 2012	#141
What a difficult situation.	Barack_America	Nov 2012	#157
The direct website to help OWS with this worthy, worthy, worthy, cause is:	tavalon	Nov 2012	#145
K&R nt	ProudProgressiveNow	Nov 2012	#149
Please buy mine...It'll be cheap lol	DiverDave	Nov 2012	#150
Now that's something Bill Gates can do with his foundation.	lalalu	Nov 2012	#151
Excellent idea.	malthaussen	Nov 2012	#153
The best news I have heard in a long time - maybe ever! n/t	AnnieK401	Nov 2012	#154
Kick	woo me with science	Nov 2012	#160

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