Level 1

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

Level 15

Reports and accounting

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

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Level 2

Reports and accounting

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