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Many people don’t realize that forgiveness of a loan triggers a taxable event. One of the more common examples is forgiveness of credit card debt but it is certainly not the only example. This is something to pay attention to if you are considering settling a loan for less than you owe, this includes all debt. One of the more common is forgiveness of credit card debt but it is certainly not the only example. A terrific article by Robert Wood goes a bit deeper and is well worth the read.