Business
Business, 08.02.2021 18:40, journeyhile5

Ralph has experienced financial difficulties as a result of his struggling business. He has been behind on his mortgage payments for the last six months. The mortgage holder, who is a friend of Ralph's, has offered to accept $80,000 in full payment of the $100,000 owed on the mortgage and payable over the next 10 years. The interest rate of the mortgage is 7%, and the market rate is now 8%. Required:
What tax issues are raised by the creditor's offer?

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Answers: 2

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