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FreshStartOrganizing
Level 1

Private Loan Cancelled

I have a client who received land from a family member and so I set up a liability account in their QB and they made payments toward the land.  The family member decided they are going to change the original price and no more payments are required from the client.  How do I record this?  I certainly do not want to show it as income, because the original price was just changed.  However, I do not want to just change the original price because I will be changing balance sheets for the past several years.

Solved
Best answer April 06, 2021

Best Answers
Rustler
Level 15

Private Loan Cancelled

Would be nice if you could, but the original loan established the asset value so that is fixed

 

When a loan is forgiven, it is other income to the business.  There is no other way around it, sorry

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2 Comments 2
Rustler
Level 15

Private Loan Cancelled

Would be nice if you could, but the original loan established the asset value so that is fixed

 

When a loan is forgiven, it is other income to the business.  There is no other way around it, sorry

View solution in original post

FreshStartOrganizing
Level 1

Private Loan Cancelled

Thank you!

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