A taxpayer generally includes in gross income the amount of debt forgiven by a lender.

Question

Quizplus · Accepted Answer

Generally, debt forgiven by a lender is considered taxable income and must be included in the taxpayer's gross income. However, there are some exceptions and exclusions, such as in the case of insolvency or certain types of forgiven student loan debt. It is important to consult a tax professional for specific advice on this topic.

A Taxpayer Generally Includes in Gross Income the Amount of Debt