It may seem like insult added to injury, but cancellation of debt, whether through foreclosure, repossession, or forgiveness of credit card, student loan, or other debt has the potential to create taxable income.This video tells you why this happens, and what you can do to possibly exclude cancellation of debt from taxable income.This video goes into a lot more detail about claiming the insolvency exclusion: https://youtu.be/cCUy8c2h3y4Follow The Tax Geek on Twitter: @taxgeekusaAdditional information and resources:IRS Publication 4681: "Cancelled debts, Foreclosures, Repossessions, and Abondonments": https://www.irs.gov/pub/irs-pdf/p4681.pdfIRS Form 1099C: "Cancellation of Debt": https://www.irs.gov/pub/irs-pdf/f1099c.pdfIRS Form 982: "Reduction of Tax Attributes due to Discharge of Indebtedness": https://www.irs.gov/pub/irs-pdf/f982.pdfcredit.com: "What is a 1099-c Cancellation of Debt Form and How Does it Impact your Taxes?": https://www.credit.com/blog/1099-c-cancellation-of-debt/Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio LibraryBackground and Outro Music: George Street Shuffle, Kevin McLeod, http://incompetech.com via YouTube Audio LibraryDISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.The tax information in this video is based on tax law and IRS regulations in place when this video was published, and is subject to the whims of Congress.