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

Name: A taxpayer generally includes in gross income the amount of debt forgiven by a lender.
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The general rule is that forgiven debt is included in gross income for tax purposes. However, there are certain exceptions and exclusions that taxpayers may be eligible for, such as insolvency, bankruptcy, and certain forms of debt forgiveness related to student loans or home mortgage debt.

A Taxpayer Generally Includes in Gross Income the Amount of Debt