When Loans Become Taxable

person writing debt on paper

Photo by rawpixel.com on Pexels.com

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.

https://www.forbes.com/sites/robertwood/2019/02/05/irs-says-loans-arent-taxed-but-audits-when-loans-are-income/amp/

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s