f****t
发帖数: 1063 | 1 Scenario one:
normally a lender lends some money (personal loan) to a borrower. if the
money cannot be repaid later, then I think:
1) the lender can claim a bad debt credit, as a capital loss on schedule D.
2) the borrower needs to report the forgiven debt as an income (either
business or personal). So IRS gets something to compensate the tax loss from
1).
Scenario two:
Now if the borrower is a foreign person, or a foreign company, can the
lender still do the similar thing to get the credit?
The | y*******3
发帖数: 659 | 2 this is what I think about the second part of the question:
For the lender, it can claim a bad debt no matter the borrower has the
ability to repay or not.
For the borrower, if the borrower can't pay,i.e bankruptcy, or insolvent,
then the bad debt doesn't create income for the borrower. | f****t
发帖数: 1063 | 3
so it doesn't matter, to the lender, whether the borrower is a foreigner, or
a foreign company?
if the borrower can pay, but don't want to pay, then this is an income?
thanks
【在 y*******3 的大作中提到】
: this is what I think about the second part of the question:
: For the lender, it can claim a bad debt no matter the borrower has the
: ability to repay or not.
: For the borrower, if the borrower can't pay,i.e bankruptcy, or insolvent,
: then the bad debt doesn't create income for the borrower.
| y*******3
发帖数: 659 | 4 i think then it creats a taxable income for the borrower. | f****t
发帖数: 1063 | 5 but the borrow is a foreign, nothing do with the IRS. still ok?
【在 y*******3 的大作中提到】
: i think then it creats a taxable income for the borrower.
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