cancel
Showing results for 
Search instead for 
Did you mean: 
gina-m-fleming
Level 1

My business has an outstanding loan that was recently forgiven by the lender. How do I record this correctly?

 
Solved
Best answer October 15, 2018

Best Answers
Rustler
Level 15

My business has an outstanding loan that was recently forgiven by the lender. How do I record this correctly?

Almost all loans in the US, that are forgiven, are income to you.  Assuming you have the loan in a liability account, do a journal entry

debit loan
credit income

Check with a tax accountant, there are some mortgage's that are included in the above, and he would know for sure

View solution in original post

2 Comments 2
Rustler
Level 15

My business has an outstanding loan that was recently forgiven by the lender. How do I record this correctly?

Almost all loans in the US, that are forgiven, are income to you.  Assuming you have the loan in a liability account, do a journal entry

debit loan
credit income

Check with a tax accountant, there are some mortgage's that are included in the above, and he would know for sure

View solution in original post

grow your company
Level 2

My business has an outstanding loan that was recently forgiven by the lender. How do I record this correctly?

This worked out great to cancel a loan on my client's account.  Thank you.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up