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Cancelling a loan, naively, is a taxable income. What's the mechanic being proposed such that "you just 'earned' $60,000 this quarter" doesn't trigger?
by hprotagonist 7y ago
Cancelling a loan, naively, is a taxable income.
What's the mechanic being proposed such that "you just 'earned' $60,000 this quarter" doesn't trigger?
- ipython 7y agoThere was an exception made during the recession to exempt cancelled mortgage debt from federal taxation, for example.
- deleted 7y ago[deleted]
- compiler-guy 7y agoCancelling the debt will require a bill. That bill can include whatever terms it wants, including a term that makes the benefit untaxable. The government can make the rules work however it wants. [With no comment on the wisdom of the plan itself.]