Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Debt forgiveness, you see, is treated as taxable income. Why? In a nutshell, if you want to gives cash and on pay it back, it's taxable. Everybody else have pay out taxes on wages from job. Part of the reason your debt forgiveness is taxable is they otherwise, end up being create a giant loophole in the tax mode. In theory, your boss could "lend" you money every 2 weeks, and also at the end of the year they could forgive it and none of it taxable.
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