Here is the deal looking at it from the lender's side. They wrote off $40K, and will include that loss on their tax return. In other words, it was a business expense that reduces their net profit. So the IRS says: "If you had an expense, did someone else gain?". Well as a matter of fact the borrower gained the $40K they were obligated to pay. So it was technically income to the borrower, even though the money was paid when the borrower originally took out the loan. It magically transformed from a loan to income when the lender wrote off the debt.
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Today's Featured Article - The Nuts and Bolts of Fasteners - Part 2 - by Curtis Von Fange. In our previous article we discussed capscrews, bolts, and nuts along with their relative hardness and thread sizes. In this segment we will finish up on our fasteners and then work with ways to keep them from loosening up in the field. Capscrews, bolts and nuts are not the only means of holding two parts together. When dealing with thinner metals like sheet tin, a long bolt and
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