Yes, I have heard of this business practice and it makes perfect sense to me. John Doe goes to the bank and borrows $200,000 to buy a farm. The bank loans him the money and he is now $200,000 (or one farm richer). He begins repaying the loan but, with $100,000 still owed, he stops paying. The bank is hung out for $100.000. They foreclose on the farm in an effort to recuperate some or all of their money. They recover $60,000 but they are still $40.000 in the hole. If they "write it off" John still has $40,000 of the banks money. Through foreclosure his debt is forgiven and he walks away with the $40,000. In the eyes of the IRS that money is income to be treated like any other earnings. Therefore, the bank is required to issue a 1099 so John can be taxed properly. Kind'a sucks but its the law!
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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