Debt LowDown

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Question: Our client decided to play lawyer and do their own Division 7A Loan Agreement. They told me that they had a complying Div 7A Loan Agreement. This year I asked to have a look at it. It has everything required but not the term of the loan. It is of course a 7 year unsecured loan (not a secured 25 year loan). Does the home-made loan comply with Div 7A? Would your advice be different if their previous accountant had a hand in preparing the Div 7A but never charged? Am I negligent for not asking to see the Div 7A earlier?

How to reduce your liability to the IRS for debt cancelled during a short sale or foreclosure.

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