Tax pages covering forgiven debt, canceled balances, and when discharged debt becomes taxable income.
This branch covers the tax treatment of canceled or forgiven debt. It groups the plain-language and technical treatment of debt discharge income around one canonical home.
The focus is on when a borrower recognizes taxable income, which exclusions may apply, and how debt relief events interact with the income-tax base.
That makes this the right place for debt forgiveness questions that are really income-tax questions, not debt-market structure questions.