For a taxpayer who is not insolvent nor under bankruptcy proceedings,the discharge of debt is generally

Question

Quizplus · Accepted Answer

Generally, the discharge of debt is considered taxable income for the taxpayer. However, there are certain exceptions such as when the discharge of debt is due to insolvency or bankruptcy. If the taxpayer is neither insolvent nor under bankruptcy proceedings, then the discharge of debt would be taxable.

For a Taxpayer Who Is Not Insolvent nor Under Bankruptcy