Generally, you do not have income from canceled debt if the cancellation or forgiveness of the debt is a gift.
FORBES: Links 10 Nov: Finally, An Occupy Wall Street Idea We Can All Get Behind, The Rolling Jubilee
It is working to reduce Iraq's external debt, which even after a round of debt forgiveness will stand at an excruciating three times GDP.
There have been a lot of articles by economists advocating debt forgiveness as a crucial way for the economy to recover, so it would not surprise me if Congress changed the laws to encourage borrowers to obtain debt forgiveness.
FORBES: A Haven From A Eurozone Crash: Investment Grade Bonds
Many of the anti-Wall Street protesters push the idea of blanket debt forgiveness as a solution.
Giving big gifts of debt forgiveness to a few people is not consistent with the purpose of the exemption.
So the organization has the burden of proving that debt forgiveness is a gift.
And there is a fear that debt forgiveness for Greece would be the thin end of a very thick wedge, such that Ireland - for example - might argue that if Greece were getting what would in effect be a large transfer from the rest of the eurozone, it would like a bit of that too, thank you very much.
In Asia, a combination of debt forgiveness, fast growth and restraint in government spending has helped the debt-to-GDP ratio contract sharply in almost every country since 2001.
ECONOMIST: The new problem with Asian sovereign debt��scarcity
Any forgiveness of debt should be firmly predicated on a country's attacking corruption.
Members of Congress have given themselves and their aides a nice back-to-school present: forgiveness of federal student loan debt.
With the possibility of a Greek default on the table, market participants have become more accepting of the use of debt forgiveness to achieve stability.
FORBES: Fed's $2.6T Payments System Risks Paralysis As Judge Orders Argentina To Pay Defaulted Bonds
As such, forgiveness of a non-recourse mortgage resulting from a foreclosure does not result in cancellation of debt income.
FORBES: You Are Not Alone: R. Kelly Joins Taxpayers Who Have Lost Homes Due To Foreclosure
First, the tax law says that debt forgiveness by a creditor is income to the debtor in the amount of the principal forgiven.
There are some specific exceptions to this rule, such as the one recently enacted for forgiveness of residential mortgage debt, which expires at the end of this year (section 108(a)(1)(E)).
It includes outright gifts and charitable donations, sales of assets for less than fair market value (which constitute a transfer of the amount by which compensation received falls short of asset value), and forgiveness of debt.
While a refreshing 65% of those surveyed by Instant.ly opposed bankruptcy as a way out of student loan debt, a full 81% of those surveyed with student debt said the government should participate in student loan forgiveness.
应用推荐