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My business has an outstanding loan that was recently forgiven by the lender. How do I record this correctly?

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Almost all loans in the US, that are forgiven, are income to you. Assuming you have the loan in a liability account, do a journal entry

debit loan
credit income

Check with a tax accountant, there are some mortgage's that are included in the above, and he would know for sure

Almost all loans in the US, that are forgiven, are income to you. Assuming you have the loan in a liability account, do a journal entry

debit loan
credit income

Check with a tax accountant, there are some mortgage's that are included in the above, and he would know for sure

This worked out great to cancel a loan on my client's account. Thank you.

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