Hi,
My company made a loan to a contractor in 2008. Now an employee, he was scheduled to repay the loan in 2010. We decided to forgive him of this loan repayment. Please let me know the proper tax treatment for this. Is it to be reported under 1099-misc in box 3 "other income".
My company made a loan to a contractor in 2008. Now an employee, he was scheduled to repay the loan in 2010. We decided to forgive him of this loan repayment. Please let me know the proper tax treatment for this. Is it to be reported under 1099-misc in box 3 "other income".