Cancellation of Debt

Are my debts that were cancelled in bankruptcy taxable?


Debt cancelled in a Title 11 bankruptcy case is not includable in your gross income if the cancellation is granted by the court or under a plan approved by the court. Certain losses, credits and basis of property must be reduced by the amounts excluded by cancellation of debt.
Answer Provided by: CPAdirectory

Share This Answer

Looking For More?

View all Cancellation of Debt Questions

View More Questions