3 ms·

Are there tax implications for rent forgiveness vs lease defaults?

• fortran77 7y ago
  If the landlord does accrual accounting then the landlord has a deductible loss, fills out a 1099-C, and the tenant needs to record that forgiven rent as income.
  • mirimir 7y ago
    OK, I thought something like that. But doing that for rent forgiveness seems iffy, in that it'd be the landlord's choice, and not something that the tenant does.
    • fortran77 7y ago
      It's income. He would have had to pay it if it weren't forgiven. It's a contractually obligated debt.