Tag Archives | cancellation-of-debt income

Tax Consequences of PPP Loans

The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences. Background In March of 2020, the CARES Act became law. It […]

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Time May Be Running Out…Again

Income tax generally applies to all forms of income, including cancellation-of-debt (COD) income. Think of it this way: If a creditor forgives a debt, you avoid the expense of making the payments, which increases your net income. Fortunately, since 2007, homeowners have been allowed to exclude from their taxable income up to $2 million in […]

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