Difference between revisions of "A Background Of Taxes - Part 1"
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Revision as of 18:26, 5 August 2026
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3 A 3. All individuals fork out tax @ 15.00 % of revenue over first Rs. 4,00,000/-. No slabs, no deductions, no exemptions, no incentives and no allowances.No distinction in the nature and income.
What is aware as your 'income' tax has two tax brackets each featuring a own tax rate from 10% to 35% (2009). These rates are placed on your taxable income which is income greater than your 'tax free' income.
I've had clients ask me to try to negotiate the taxability of debt forgiveness. Unfortunately, no lender (including the SBA) to enhance to do such a thing. Just like your employer it will take to send a W-2 to you every year, a lender is had to send 1099 forms for all borrowers which debt forgiven. That said, just because lenders must be present to send 1099s does not imply that you personally automatically will get hit by using a huge goverment tax bill. Why? In most cases, the borrower is really a corporate entity, and you might be just an individual guarantor. I know that some lenders only send 1099s to the borrower. The impact of the 1099 pertaining to your personal situation will vary depending on what kind of entity the borrower is (C-Corp, S-Corp, LLC, etc). Most CPAs will means to let you know that a 1099 would manifest itself.
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