Using IntelliConnect, please answer the following questions:

1. If a taxpayer guarantees a loan for a friend, and if that loan is forgiven, does the taxpayer/guarantor have forgiveness of indebtedness income? Please cite your authority.

2. If a taxpayer creates a pharmaceutical and spends 3/4ths of 2021 developing a vaccine, thereby spending lots of money. Is that money he/she spent in 2021 deductible in 2021? This taxpayer did not sell any of the vaccine until July 2022. That is, he/she had zero sales in 2021. The taxpayer says he/she would have sold some of the vaccine in 2021 if the FDA had given him/her the green light, but they were not allowed to put it out on the market until July 2022. How would you advice this taxpayer in terms of the treatment of the money spent in 2021?