If a friend of mine spent $250,000 to buy an RV for me and I agreed to pay him back, but then he forgave the loan so I didn’t have to, I would be required to declare $250,000 in income and pay taxes on it. If I didn’t, I would be charged at a minimum with civil tax evasion and be required to pay the taxes due plus penalties and interest. More likely, I’d be charged with criminal tax fraud. But then again I’m not Clarence Thomas, who got away with it scot-free.