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Roger, Attorney
Category: Legal
Satisfied Customers: 31684
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I live in Oregon and I filed a bankruptcy chapter 7 personal

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I live in Oregon and I filed a bankruptcy chapter 7 personal and it was accepted and debtt discharge in 2012. there were $70,000 unsecured non priority debts that were fully discharged from credit cards and visa/master card acccounts. My tax cpa is now asking if i had any tax attributes on debt cancellation and what is the IRS code section that protects me from paying a gain on discharged debts. My attorney is unavailable to two weeks and the BK trustee wont answer since my case has been disscharged.
can you help?
Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question. I'll be glad to assist.

Cancelled debts are not taxable income.

You would use IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness to show the IRS that the discharged amount is excluded from income under Code Sec. 108 (

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