Tax Facts

8132 / What types of discharge of debt income are excluded from gross income?

Updated: October 23, 2026 at 07:08 PM

There are five types of discharge of debt income that are excluded from gross income. As discussed in more detail in Q 8133 to Q 8138, the five exclusions are:


  • Discharge in bankruptcy;

  • Insolvency discharge;

  • Qualified farm indebtedness discharge;

  • Qualified real property business discharge; and

  • Qualified principal residence discharge.


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