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Revision as of 01:51, 3 September 2026


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Debt forgiveness, you see, is treated as taxable income. Why? In the nutshell, market gives cash and you should not pay it back, it's taxable. That you have pay out taxes on wages out of a job. The main reason that debt forgiveness is taxable is simply because otherwise, it create an enormous loophole inside of the tax pin. In theory, your boss could "lend" you money every 2 weeks, and also at the end of the season they could forgive it and none of it would be taxable.

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