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Cancelled Debt – Excluded Debt
Excluded Debt Excluded Debt Excluded Debt
The debt is canceled in a The debt is qualified farm The cancellation is
bankruptcy case under debt and is canceled by a intended as a gift.
title 11 of the U.S. Code. qualified person. See The debt is qualified
See Pub. 908, Bankruptcy chapter 3 of Pub. 225, principal residence
Tax Guide. Farmer's Tax Guide.
The debt is canceled The debt is qualified real indebtedness.
when you’re insolvent. property business debt.
However, you can’t See chapter 5 of Pub. 334.
exclude any amount of
canceled debt that’s more
than the amount by which
you’re insolvent. See Pub.
908.
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