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Sadly, the Tax Court agreed with the IRS. They call it cancellation of indebtedness income (COI).
FORBES: Avoiding Excess Credit Card Interest Should Not Be A Taxable Event
Specifically, the President would make permanent the expanded American Opportunity and Earned Income credits and extend through 2016 the current exclusion from taxable income for cancellation of indebtedness recognized on a primary residence.
FORBES: Tax Aspects Of The President's FY 2014 Budget
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