Yes. Although under a recent tax law in some very specific cases it may not be.
Borrowed money is not taxable, because you incur a liability to repay exactly what you borrowed…your actually not worth anything more after borrowing than you were before…you new obligation offsets the increase in cash. Clearly, if someone gives you money in a business deal, it is income. Agreeing to not collect back all they gave you, cancelling debt, is the same as giving another money. You are enriched by the amount of liability that was dropped.
Yes. Although under a recent tax law in some very specific cases it may not be.
Borrowed money is not taxable, because you incur a liability to repay exactly what you borrowed…your actually not worth anything more after borrowing than you were before…you new obligation offsets the increase in cash. Clearly, if someone gives you money in a business deal, it is income. Agreeing to not collect back all they gave you, cancelling debt, is the same as giving another money. You are enriched by the amount of liability that was dropped.