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unpaid loan as income

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woodyh

Junior Member
What is the name of your state?
If you received a loan in 2004 from your employer and in 2005 you were told that you didn\'t have to pay back the loan, is that considered income? And if yes, is it income for 2004 or when you were told it didn\'t have to be repaid which would be 2005.

Thanks in advance for any advice or help with this question.
 


LdiJ

Senior Member
woodyh said:
What is the name of your state?
If you received a loan in 2004 from your employer and in 2005 you were told that you didn\'t have to pay back the loan, is that considered income? And if yes, is it income for 2004 or when you were told it didn\'t have to be repaid which would be 2005.

Thanks in advance for any advice or help with this question.
Yes a forgiven loan becomes taxable income. It becomes taxable in the year that it is forgiven.
 

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