Get IRS Publication 4681 2015
Of a debt, that you don't have to pay isn't considered canceled debt. These exceptions are discussed later under Exceptions. Sometimes a canceled debt may be excluded from your income. But if you do exclude canceled debt from income, you may be required to reduce your tax attributes. These exclusions and the reduction of tax attributes associated with them are discussed later under Exclusions. Foreclosure and repossession are remedies that your lender may exercise if you fail to make payme.
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