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Version du 9 novembre 2026 à 16:39
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Just like your employer is required to send a W-2 to you every year, a lender is needs to send 1099 forms to all borrowers who have debt pardoned. That said, just because lenders will be required to send 1099s doesn't suggest that you personally automatically will get hit using a huge tax bill. Why? In most cases, the borrower can be a corporate entity, and you just an individual guarantor. I realize that some lenders only send 1099s to the borrower. Effect of the 1099 on your personal situation will vary depending on kind of entity the borrower is (C-Corp, S-Corp, LLC, etc).
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