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Interest on loan considered taxable income or just principal?

Started by Hueylewisfan, April 21, 2020, 07:34:07 pm

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Hueylewisfan

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?

TheCollegeInvestor

Under what forgiveness program? Some are taxable, some are not.

Let's assume it's taxable. The amount is based on the total value of the loan at discharge. Principal, Interest, and any fees or collection costs on the loan.

See this: taxes and loan forgiveness.