PTIN Seal

Cancellation of Debt

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Cancellation of Debt
  4. Are my debts that were cancelled in bankruptcy taxable?

Are my debts that were cancelled in bankruptcy taxable?

Debt cancelled in a Title 11 bankruptcy case is not includable in your gross income if the cancellation is granted by the court or under a plan approved by the court. Certain losses, credits and basis of property must be reduced by the amounts excluded by cancellation of debt.

Need Professional Help?

If you need help with "Cancellation of Debt" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.