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

Name: For a taxpayer who is not insolvent nor under bankruptcy proceedings,the discharge of debt is generally
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

Generally, if a taxpayer is not insolvent or under bankruptcy proceedings, the discharge of debt is taxable as income. The discharged amount is treated as cancellation of indebtedness (COD) income and must be reported on the taxpayer's tax return.

For a Taxpayer Who Is Not Insolvent nor Under Bankruptcy