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Fun Fact Friday: Debt Forgiveness = Income

From the IRS website:

Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes. The lender is usually required to report the amount of the canceled debt to you and to the IRS. (There are several exceptions, such as insolvency or bankruptcy.)

DISCLAIMER: NOTHING ON THIS WEBSITE IS INTENDED TO BE TAKEN AS LEGAL ADVICE.  CASE RESULTS DEPEND UPON A VARIETY OF FACTORS UNIQUE TO EACH CASE.  ANY CASE RESULTS DISCUSSED ON THIS WEBSITE DO NOT GUARANTEE OR PREDICT A SIMILAR RESULT IN ANY FUTURE CASE UNDERTAKEN BY THE LAWYER.

 

Information found on this website is not a substitute for the advice of an attorney.

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