Living Stingy: 10/01/2019
If you allowed forgiven personal debt to be untaxable, we could all pay each other in forgiven loans and prevent the IRS completely! A recently available heartbreaking story in the paper (which of course, tells only one side of the story) concerns a disabled vet who went to Cooley Law School and ran up a quarter-million dollars in education loan debt. I will avoid commenting about Cooley Law School as they have sued people in the past who have discussed their operations.
The Wikipedia hyperlink cited above, if read carefully, tells the complete story. Sadly, this story is repeated time and amount of time in America again, where we are informed that a college education – any college education at any university in any field of study – is a one-way ticket to riches. 250,000 in student loans, today even.
For people majoring in “Sociology” or “International Law” or other nebulous areas? People who attend “for income” or bottom tier schools? You will find better fields to review, and cheaper ways to start getting a level. 60,a year on university is just plain dumb – regardless of what your major is 000.
Sorry, but that is the God’s Honest Truth about any of it. 250,000 in debt. Plus I had a job after i graduated – the same job I put before I graduated! Now he’s on full disability and his law degree is pretty worthless to him. Oh, it isn’t all bad news, of course.
There are still lawyers – with experience – who have found jobs and work. They aren’t making the big bucks that you observe on television laws shows, however. It really is a much more competitive business than before. That ain’t such a bad thing, could it be? 250,000 “payday” places him in the highest brackets, he owes about 40% of the loan amount as income tax- and a smaller amount to the State as well. For some people, this makes no sense, or at the minimum, seems unfair.
The poor man can’t repay his loans on the disability income, so there is absolutely no real way he pays the fees on it, either. Perhaps a payment plan can be worked out with the IRS to pay the debt in installments over a number of years. Maybe the federal government will come up with a fresh rules exempting people on impairment out of this tax.
Hell may possibly also freeze over, too. But while it might be unfair to tax a disabled person this real way, the underlying premise of the taxes code in taxing forgiven debt isn’t anything new or anything surprising. If we allowed “forgiven” personal debt to be untaxed, it would not take long for everyone to be paying one another in forgiven loans. For instance, suppose you wished to pay me a million dollars.
- 7 Global Price, Cost and Gross of Trawler Luxury Motor-yachts 2013-2016
- Tend to pay lower interest
- Total revenue = P5,000 + P3,000 = P8,000 gain
- Buy $0-$9,999, percent charged is 2.90%
- = Annual Depreciation Allowance
- ► 2014 (17) – ► December (1)
400,000 in thereabouts or taxes. I suppose we’re able to form a Subchapter-S corporation or something and I could pay myself in dividends or deferred interest as Mitt Romney and Donald Trump do. That may knock me down to 25% or even 15% capital benefits rates, if we organised it right.
Well, the IRS and america Government aren’t that dumb. That loophole was shut a long time and Publication 4681 explains how this works ago. And if you think about it, there are logical reasons why this law is set up. A loan forgiven is income, because your net worth just jumped up by the quantity of the debt that was destroyed.