Question
Ella's main home was foreclosed in 2021. Ella received Forms 1099-C reporting the following amounts of canceled debt: $10,000 in acquisition debt. $5,000 of a
Ella's main home was foreclosed in 2021. Ella received Forms 1099-C reporting the following amounts of canceled debt: $10,000 in acquisition debt. $5,000 of a home equity loan. Ella used the funds from this loan to purchase a new car. How much of this cancellation of debt is excludable from Ella's 2021 income under the qualified principal residence exclusion?
$0. The qualified principal residence exclusion does not apply to debt canceled in 2021.
$5,000.
$10,000.
$15,000.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
978-0078110894
