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If the upfront award given is $700,000 over a period of 9 years and says it is a forgiveable loan is the incentive amount taxable as oridinary income when received or if the time period is a total of 9 years does the 700,000 get taxed in year 9? I have heard there is an established interest rate that is amortized and is taxable annually until the loan is forgiven.
Please clarify what part is taxable and when.
If the 700000 is to be paid over 5 years, and the loan rate is extremely small, why would they want to extend it to 9 years?