How to Account for Debt Forgiveness?

Answer Long-term debt instruments, unlike equity instruments, represent a guarantee of repayment. Bonds, notes, and mortgages (the 3 most common types of long-term debt) all obligate the borrower to repay... Read More »

Top Q&A For: How to Account for Debt Forgiveness

Define Debt Forgiveness?

Debt forgiveness can relieve financial hardship by eliminating your liability for a portion of oustanding debts.

What is the Mortgage Forgiveness Debt Relief Act?

The Mortgage Forgiveness Debt Relief Act was passed in 2007. The legislation enabled citizens who restructured their mortgage to avoid paying taxes on income gained from debt reduction. Prior to th... Read More »

What Is Mortgage Forgiveness Debt Relief?

The Mortgage Forgiveness Debt Relief Act was enacted in 2007 and extends to 2012. For taxpayers whose mortgages are canceled or reduced during this time, the act exempts them from reporting the for... Read More »

Is credit card debt forgiveness taxable?

Many Americans are swimming in credit card debt. Debt can be forgiven under certain circumstances, and most people are thrilled when this happens. Not so thrilling is learning that much of the forg... Read More »