A 1995 decision by the Eighth Circuit Court of Appeals has dramatized once again that there is relief from discharge of indebtedness income but there is no relief from gain triggered on property transferred in settlement of debt obligations. That is the outcome even for insolvent taxpayers.
"Gain for Insolvent Taxpayers,"
Agricultural Law Digest: Vol. 6
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol6/iss13/1