Insolvency Calculation: What Does “Interest in a Retirement Account” Mean?
In this case, the term “interest” means “stake.” For example, if your 401(k) account has a balance of $15,000, you have a $15,000 “interest” in that account.
From the Archives: Send a 1099-C to a Non-Paying Customer? Updated
Can you send a 1099 to a deadbeat client? It’s probably legal, but probably not a good idea.
From the Archives: Insolvency and Canceled Debt: Make Sure You Can Prove It!
Canceled debt is generally taxable, but not if you’re insolvent.