Question

Tricia had $100,000 in mortgage debt forgiven through a short sale on her principal residence on her Federal income tax return. Generally, Tricia must include what amount of the discharge of indebtedness from the disposition of her principal residence when completing her Schedule CA for 2019?
a) $0.
b) $25,000.c) $50,000.d) $100,000.

Answer 1

Answer:

d) $100,000

Explanation:

In answer to this question, Tricia must include $100000 as the amount of the discharge of indebtedness from the disposition of her principal residence when when she is completing her Schedule CA for the year 2019.

We have option d, 100000 dollars as the answer because the ​amount of debt forgiven is known to be taxable.