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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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