Many businesses are facing the financial effects of the Covid-19 pandemic. The loss of clients and decreased cash flow have forced businesses to make some hard choices that involve restructuring debt either in- or outside of bankruptcy or simply closing the doors.
We all understand that when we borrow money, we're legally obligated to repay it. What happens when you're forgiven in part and don't have to pay back the full amount? After many huzzahs, you discover that it's not entirely forgiven. The amount of the canceled debt is taxable, and you must report it on your tax return for that year.
Newsletter articles are posted every 2 weeks.
If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.