Annual Taxes - Humor In The Drudgery: Difference between revisions
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Revision as of 19:57, 12 October 2025
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4) Perform about to retire? Any amounts withdrawn from a retirement plan before your 59 1/2 are depending upon early withdrawal penalties plus it'll be treated as regular taxable income. No early withdrawals!
I've had clients ask me to utilize to negotiate the taxability of debt forgiveness. Unfortunately, no lender (including the SBA) features to boost to do such a thing. Just like your employer is required to send a W-2 to you every year, a lender is needed send 1099 forms everybody borrowers that debt pardoned. That said, just because lenders will be required to send 1099s doesn't mean that you personally automatically will get hit with a huge tax bill. Why? In most cases, the borrower is really a corporate entity, and you are just a personal guarantor. I understand that some lenders only send 1099s to the borrower. Effect of the 1099 in your own personal situation will vary depending on kind of entity the borrower is (C-Corp, S-Corp, LLC, etc). Most CPAs will have the option to let you know that a 1099 would manifest itself.
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