Cancellation of debt income
Taxable income arising when a lender forgives or discharges a debt for less than the amount owed. Exceptions exist for bankruptcy, insolvency, and qualified principal residence indebtedness under Section 108.
Taxable income arising when a lender forgives or discharges a debt for less than the amount owed. Exceptions exist for bankruptcy, insolvency, and qualified principal residence indebtedness under Section 108.