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If loan is forgiven, what is the figure used to calculate taxable income? Does it include the principal only, or the principal and all accrued interest as well?
Ex: unpaid loan amount = $10,000
Interest amount over 22 years = $10000
Would all $20,000 be considered the forgiveness amount and therefor taxable as income?
Ex: unpaid loan amount = $10,000
Interest amount over 22 years = $10000
Would all $20,000 be considered the forgiveness amount and therefor taxable as income?