Interested case. A client has received a Cancellation of Debt. The amount of discharged is $85,701.48. The interest in box three is $2,373.02. The fair market value of the property is $163,949.00. The client states that his own was near foreclosure, but just in time, he was able to refinance. Can any amount of the discharged debt be excluded or do we have to determine whether he is insolvent? Thanks for replies.
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