26 U.S.C. 108: Income from discharge of indebtedness

2021

• Pub. L. 117–2 added par. (5) and struck out former par. (5) which related to discharges on account of death or disability. (American Rescue Plan Act of 2021) Law text · (f)

2020

• Pub. L. 116–260, §114(a), substituted "January 1, 2026" for "January 1, 2021" in two places. (Consolidated Appropriations Act, 2021) Law text · (a)
• Pub. L. 116–260, §114(b), substituted "$750,000 ($375,000" for "$2,000,000 ($1,000,000". (Consolidated Appropriations Act, 2021) Law text · (h)

2019

• Pub. L. 116–94, §101(a), substituted "January 1, 2021" for "January 1, 2018" in two places. (Further Consolidated Appropriations Act, 2020) Law text · (a)
• Pub. L. 116–94, §101(b), inserted "and determined without regard to the substitution described in section 163(h)(3)(F)(i)(II)" after "clause (ii) thereof". (Further Consolidated Appropriations Act, 2020) Law text · (h)

2018

• Pub. L. 115–123 substituted "January 1, 2018" for "January 1, 2017" in two places. (Bipartisan Budget Act of 2018) Law text · (a)

2017

• Pub. L. 115–97 added par. (5). Law text · (f)

2015

• Pub. L. 114–113, §151(b), substituted "discharged—" for "discharged before January 1, 2017." and added cls. (i) and (ii). (Consolidated Appropriations Act, 2016) Law text · (a)
• Pub. L. 114–113, §151(a), substituted "January 1, 2017" for "January 1, 2015". (Consolidated Appropriations Act, 2016) Law text · (a)

2014

• Pub. L. 113–295 substituted "January 1, 2015" for "January 1, 2014". Law text · (a)

2013

• Pub. L. 112–240 substituted "January 1, 2014" for "January 1, 2013". (American Taxpayer Relief Act of 2012) Law text · (a)

2010

• Pub. L. 111–148 amended par. (4) generally. Prior to amendment, text read as follows: "In the case of an individual, gross income shall not include any amount received under section 338B(g) of the Public Health Service Act or under a State program described in section 338I of such A… (Patient Protection and Affordable Care Act) Law text · (f)

2009

• Pub. L. 111–5 added subsec. (i). (American Recovery and Reinvestment Act of 2009) Law text · (i)

2008

• Pub. L. 110–343 substituted "January 1, 2013" for "January 1, 2010". (Emergency Economic Stabilization Act of 2008) Law text · (a)

2007

• Pub. L. 110–142, §2(a), added subpar. (E). (Mortgage Forgiveness Debt Relief Act of 2007) Law text · (a)
• Pub. L. 110–142, §2(c)(1), substituted "(D), and (E)" for "and (D)". (Mortgage Forgiveness Debt Relief Act of 2007) Law text · (a)
• Pub. L. 110–142, §2(c)(2), added subpar. (C). (Mortgage Forgiveness Debt Relief Act of 2007) Law text · (a)
• Pub. L. 110–142, §2(b), added subsec. (h). (Mortgage Forgiveness Debt Relief Act of 2007) Law text · (h)

2004

• Pub. L. 108–357, §896(a), amended heading and text of par. (8) generally. Prior to amendment, text read as follows: "For purposes of determining income of a debtor from discharge of indebtedness, if a debtor corporation transfers stock to a creditor in satisfaction of its indebtedne… (American Jobs Creation Act of 2004) Law text · (e)
• Pub. L. 108–357, §320(a), added par. (4). (American Jobs Creation Act of 2004) Law text · (f)

2002

• Pub. L. 107–147 inserted ", including by not taking into account under section 1366(a) any amount excluded under subsection (a) of this section" before period at end. (Job Creation and Worker Assistance Act of 2002) Law text · (d)

1998

• Pub. L. 105–206, §6004(f)(1), amended concluding provisions generally. Prior to amendment, concluding provisions read as follows: "The term 'student loan' includes any loan made by an educational organization so described or by an organization exempt from tax under section 501(a) to… (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (f)
• Pub. L. 105–206, §6004(f)(2), struck out "(or by an organization described in paragraph (2)(E) from funds provided by an organization described in paragraph (2)(D))" after "paragraph (2)(D)". (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (f)

1997

• Pub. L. 105–34, §225(a)(1), added subpar. (D) and concluding provisions and struck out former subpar. (D) which read as follows: "any educational organization so described pursuant to an agreement with any entity described in subparagraph (A), (B), or (C) under which the funds from … (Taxpayer Relief Act of 1997) Law text · (f)
• Pub. L. 105–34, §225(a)(1), struck out "or" at end. (Taxpayer Relief Act of 1997) Law text · (f)
• Pub. L. 105–34, §225(a)(2), added par. (3). (Taxpayer Relief Act of 1997) Law text · (f)

1996

• Pub. L. 104–188 substituted "paragraph (3)(C)" for "paragraph (3)(B)". (Small Business Job Protection Act of 1996) Law text · (d)

1993

• Pub. L. 103–66, §13150(a), added subpar. (D). · (a)
• Pub. L. 103–66, §13150(c)(1), substituted ", (C), and (D)" for "and (C)". · (a)
• Pub. L. 103–66, §13150(c)(2), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: "Subparagraph (C) of paragraph (1) shall not apply to a discharge to the extent the taxpayer is insolvent." · (a)
• Pub. L. 103–66, §13226(b)(1), added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively. Former subpar. (E) redesignated (F). · (b)
• Pub. L. 103–66, §13226(b)(2), added subpar. (F). Former subpar. (F) redesignated (G). · (b)
• Pub. L. 103–66, §13226(b)(1), redesignated subpar. (E) as (F). · (b)
• Pub. L. 103–66, §13226(b)(2), redesignated subpar. (F) as (G). · (b)
• Pub. L. 103–66, §13226(b)(3)(A), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: "The reductions described in subparagraphs (B) and (E) of paragraph (2) shall be 331/3 cents for each dollar excluded by subsection (a)." · (b)
• Pub. L. 103–66, §13226(b)(3)(B), substituted "(D)" for "(C)" in heading and text. · (b)
• Pub. L. 103–66, §13226(b)(3)(C), substituted "(G)" for "(E)" in heading and text. · (b)
• Pub. L. 103–66, §13150(b), added subsec. (c). · (c)
• Pub. L. 103–66, §13150(c)(3)(B), substituted "certain provisions" for "subsections (a), (b) and (g)" in heading. · (d)
• Pub. L. 103–66, §13150(c)(3)(A), (C), substituted "Certain provisions" for "Subsections (a), (b) and (g)" in heading and "subsections (a), (b), (c), and (g)" for "subsections (a), (b), and (g)" in text. · (d), (7)
• Pub. L. 103–66, §13150(c)(4), inserted at end "The preceding sentence shall not apply to any discharge to the extent that subsection (a)(1)(D) applies to such discharge." · (d)
• Pub. L. 103–66, §13150(c)(5), inserted "or under paragraph (3)(B) of subsection (c)" after "subsection (b)". · (d)
• Pub. L. 103–66, §13226(a)(2)(B), substituted "Except as provided in regulations, for" for "For". · (e)
• Pub. L. 103–66, §13226(a)(1)(B), amended heading and text of par. (8) generally. Prior to amendment, text read as follows: "For purposes of determining income of the debtor from discharge of indebtedness, the stock for debt exception shall not apply— · (e)
• Pub. L. 103–66, §13226(a)(1)(A), redesignated par. (11) as (10) and struck out former par. (10) which related to satisfaction of indebtedness by transfer of corporation's stock. · (e), (11)
• Pub. L. 103–66, §13226(b)(3)(D), substituted "subparagraphs (A), (B), (C), (D), (F), and (G)" for "subparagraphs (A), (B), (C), and (E)" and "subparagraphs (B), (C), and (G)" for "subparagraphs (B) and (E)" and inserted before period at end "and the attribute described in subpara… · (g)

1990

• Pub. L. 101–508, §11325(b)(2), inserted provision at end that any stock which is a disqualified stock, as so defined, not be treated as stock for purposes of this paragraph. · (e)
• Pub. L. 101–508, §11325(b)(1), substituted heading for one which read: "Exception for title 11 cases and insolvent debtors" and amended text generally. Prior to amendment, text read as follows: "Subparagraph (A) shall not apply in the case of a debtor in a title 11 case or to th… · (e)
• Pub. L. 101–508, §11325(a)(1), added par. (11). · (e)
• Pub. L. 101–508, §11813(b)(6), substituted "section 49(a)(1)(D)(iv)" for "section 46(c)(8)(D)(iv)". · (g)

1988

• Pub. L. 100–647, §1004(a)(1), added subpar. (C). · (a)
• Pub. L. 100–647, §1004(a)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "Subparagraph (B) of paragraph (1) shall not apply to a discharge which occurs in a title 11 case." · (a)
• Pub. L. 100–647, §1004(a)(3), struck out "in title 11 case or insolvency" after "Reduction of tax attributes" in heading and substituted "subparagraph (A), (B), or (C)" for "subparagraph (A) or (B)" in text of par. (1). · (b)
• Pub. L. 100–647, §1004(a)(6)(B), which directed amendment of subsec. (d) heading by substituting "subsections (a), (b), and (g)" for "subsections (a), and (b)", was executed by making the substitution for "subsections (a) and (b)" as the probable intent of Congress. · (d)
• Pub. L. 100–647, §1004(a)(6)(A), (C), substituted "Subsections (a), (b), and (g)" for "Subsections (a) and (b)" in heading and "subsections (a), (b), and (g)" for "subsections (a) and (b)" in text. · (d)
• Pub. L. 100–647, §1004(a)(6)(A), (C), substituted "Subsections (a), (b), and (g)" for "Subsections (a) and (b)" in heading and "subsections (a), (b), and (g)" for "subsections (a) and (b)" in text. · (d)
• Pub. L. 100–647, §1004(a)(4), substituted "indebtedness" for "indebtedness of solvent farmers" in heading and amended text generally. Prior to amendment, text read as follows: · (g)

1986

• Pub. L. 99–514, §822(a), struck out subpar. (C) relating to exclusion from gross income if the indebtedness discharged is qualified business indebtedness. · (a)
• Pub. L. 99–514, §822(b)(1), substituted "Subparagraph (B) of paragraph (1)" for "Subparagraphs (B) and (C) of paragraph (1)" in subpar. (A), struck out subpar. (A) designation and heading, and struck out subpar. (B) providing that insolvency exclusion takes precedence over qualified… · (a)
• Pub. L. 99–514, §231(d)(3)(D), substituted "General business credit" for "Research credit and general business credit" in heading and amended text, as amended by this Act (Pub. L. 99–514, §1171(b)(4) (see below)), generally. Prior to amendment, text read as follows: "Any carryove… · (b)
• Pub. L. 99–514, §1171(b)(4), struck out last sentence which had been eliminated by the general amendment of subpar. (B) by Pub. L. 99–514, §231(d)(3)(D). See above. · (b)
• Pub. L. 99–514, §1847(b)(7), substituted "section 27" for "section 33". · (b)
• Pub. L. 99–514, §104(b)(2), substituted "331/3 cents" for "50 cents". · (b)
• Pub. L. 99–514, §822(b)(2), struck out subsec. (c) relating to tax treatment of discharge of qualified business indebtedness. · (c)
• Pub. L. 99–514, §822(b)(3)(B), struck out reference to subsec. (c) in heading. · (d)
• Pub. L. 99–514, §822(b)(3)(A), struck out par. (4) relating to treatment of indebtedness as qualified business indebtedness. · (d)
• Pub. L. 99–514, §822(b)(3)(B), struck out reference to subsec. (c) in heading and text. · (d), (7)
• Pub. L. 99–514, §822(b)(3)(C), struck out "The preceding sentence shall not apply to any discharge to the extent that subsection (a)(1)(C) applies to such discharge." · (d)
• Pub. L. 99–514, §822(b)(3)(D), struck out "under paragraph (4) of this subsection or" after "An election". · (d)
• Pub. L. 99–514, §805(c)(2), substituted "subsection (a) or (b) of section 166" for "subsection (a), (b), or (c) of section 166". · (e)
• Pub. L. 99–514, §805(c)(3), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out former subpar. (B) which related to taxpayers on reserve method. · (e)
• Pub. L. 99–514, §805(c)(3), (4), redesignated subpar. (F) as (E) and substituted "the foregoing subparagraphs" for "subparagraphs (A), (B), (C), (D), and (E)". Former subpar. (E) redesignated (D). · (e), (F)
• Pub. L. 99–514, §621(e), repealed the amendment by Pub. L. 98–369, §59(b)(1), which had added subpar. (C) creating an exception for transfers in certain workouts of the satisfaction of indebtedness by corporation's stock. See 1984 Amendment note below. · (e)
• Pub. L. 99–514, §405(a), added subsec. (g). · (g)

1984

• Pub. L. 98–369, §474(r)(5), substituted provisions relating to research credits and general business credits covering carryovers to or from the taxable year of a discharge of an amount for purposes of determining the amount allowable as a credit under section 30 (relating to cred… · (b)
• Pub. L. 98–369, §721(b)(2), struck out "or S corporation shareholder level" in heading and second sentence which provided that "In the case of an S corporation, subsections (a), (b), and (c) shall apply at the shareholder level.". See par. (7)(A). · (d)
• Pub. L. 98–369, §721(b)(2), added par. (7) and redesignated former pars. (7) to (9) as (8) to (10), respectively. · (d)
• Pub. L. 98–369, §59(a), added par. (10). · (e)
• Pub. L. 98–369, §59(b)(1), which added subpar. (C), effective as if included in the amendments made by section 806(e) and (f) of Pub. L. 94–455, was repealed by Pub. L. 99–514, §621(e), (f)(2), eff. Jan. 1, 1986, with certain exceptions, see Effective Date of 1986 Amendment note… · (e)
• Pub. L. 98–369, §1076(a), added subsec. (f). · (f)

1983

• Pub. L. 97–448, §102(h)(1), added cl. (v). · (b)
• Pub. L. 97–448, §304(d), added cl. (iii). · (e)

1982

• Pub. L. 97–354 inserted "or S corporation shareholder level" in heading and inserted "In the case of an S corporation, subsections (a), (b), and (c) shall be applied at the shareholder level." · (d)

1980

• Pub. L. 96–589 completely revised and expanded provisions by specifying the types of indebtedness and by setting out priorities among the exclusions, to reflect the revision of Title 11, Bankruptcy, in 1978.

1976

• Pub. L. 94–455, §1951(b)(2)(A), struck out "(a) Special rule of exclusion.—" after "Income from discharge of indebtedness" and struck out subsec. (b) which related to discharge, cancellation, or modification of indebtedness of certain railroad corporations.
• Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary".

1960

• Pub. L. 86–496 provided that if the discharge, cancellation, or modification of any indebtedness is effected pursuant to a court order in a receivership proceeding or in a proceeding under section 77 of the Bankruptcy Act, commenced before Jan. 1, 1960, then no amount is to be included… · (b)