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

gina-m-fleming · ‎10-15-2018

Rustler · ‎10-15-2018

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

Rustler · ‎10-15-2018

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

grow your company · ‎08-31-2019

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

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