The tax laws routinely spell out in excruciating detail just what a person does or does not have to count as reportable income, whether the source of that income is wages, investments, or what have you.
Moreover, to resolve most disputes about whether a particular item should be classified as reportable, the law authorizes the IRS to collect its share of all income from whatever source derived, unless something is specifically exempt from taxation, such as property received as a gift or an inheritance.
With that background out of the way, consider something called the canceled debt rule a provision known to few people, aside from lawyers and others like myself who get paid to demystify the tax code. Under Internal Revenu…
Read the full article at: http://www.accountingweb.com/tax/irs/why-gamblers-canceled-debt-was-not-taxable-income
