Blake maxed out the credit limit on his credit card, owing Visa $10,000. After losing his job and not making any payments on the credit card for over two years, Blake's mother paid off the debt on Blake's behalf. At the time his mother paid the $10,000 directly to Visa, Blake was living in a modest condominium with an adjusted basis of $30,000. 

What are Blake's tax consequences? Q

Answer rating: 100% (QA)

Debt Discharge Income When Blakes mother paid off the 10000 debt on his behalf it is considered debt ... View the full answer