Do you know the origin of the word “jubilee?” A Jubilee, in the most ancient sense of the word, was a special year in which slaves would be freed, debts forgiven, and great feasts eaten.
In our practice, we’ve been getting a lot of questions about potential upcoming student loan forgiveness, debts, and potential tax consequences. Under normal circumstances, creditors that discharge debt will issue a corresponding Form 1099-C Cancellation of Debt for inclusion in that year’s income. Although this is a nuanced situation, we asked our friends at the AAEPA what they thought about potential developments. Please see their article here for a more detailed view.