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Old 10-18-2008, 11:07 PM
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Lease Settlement and Taxable Income

What is the name of your state (only U.S. law)? California
I was offered a settlement on my retail lease for which I had 2 years remaining. The settlement offer was $72k less than what I would have owed for the 2 years. Is this considered debt forgiveness? Is it considered taxable income? The business was a sole proprietorship. Thank you for any advice or help!What is the name of your state (only U.S. law)?
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Old 10-19-2008, 11:20 AM
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Originally Posted by dawnyrose View Post
What is the name of your state (only U.S. law)? California
I was offered a settlement on my retail lease for which I had 2 years remaining. The settlement offer was $72k less than what I would have owed for the 2 years. Is this considered debt forgiveness? Is it considered taxable income? The business was a sole proprietorship. Thank you for any advice or help!What is the name of your state (only U.S. law)?
No, that is not debt forgiveness. It was not a debt, it was a contract which they allowed you to break, via a settlement.
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