Quote Originally Posted by Rapid Robert View Post
The Pub you reference uses the term "exceptions", not "exemptions".

The insolvency exclusion is not new.

What is "FA Loan Debt"?
Thanks for the correction: I believe you are right -- was going on the memory.

As for the "FA Loan Debt," I believe that FA stands for Financial Advisor; the taxpayer was paid for his "book" under a rather complicated employment agreement, where some of the payment (or earnings) was deferred and some was set up as a loan, to be forgiven when the employee left his employment. Box 6 was listed as "F" (for per Agreement) on the 1099-C.

We have decided that this forgiven loan is taxable. (The diagnosis of Parkinson's apparently doesn't change the agreement.) If anyone has more light to shed on this subject, I would be grateful.