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NYC isn't exactly forgiving the debt, but is working with a non-profit that basically buys debt for pennies on the dollar, and then doesn't collect on it, wipin

NYC isn't exactly forgiving the debt, but is working with a non-profit that basically buys debt for pennies on the dollar, and then doesn't collect on it, wiping it clean (and presumably updating credit reports showing it as paid) They are spending $18M to wipe out the $2B.

artninja1988 3y ago
And where does the nonprofit have the money from?
- RobRivera 3y ago
  Donations They get funded Through donations.
- bdcravens 3y ago
  In this case, NYC is giving them the $18M; this is just under 1% of the debt amount, so I assume that's enough to buy debt that is unlikely to be collected on anyways.
iamdbtoo 3y ago
They have to buy the debt in order to forgive it.
notatoad 3y ago
is this a workaround for debt forgiveness counting as income for tax purposes?
- bdcravens 3y ago
  No. They'll still likely have to pay taxes on those amounts. I don't think it matters who forgives the debt.
- jareklupinski 3y ago
  it sure seems like donating 1k to a charity to wipe away >1M of debt should make you a millionnaire
deleted 3y ago
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