Thank you so much. I agree it makes sense that because the expenses were deducted in a prior year the amount would be taxable. However, the instructions specifically say if the debt was cancelled in a Chapter 11 Bankruptcy that it is excluded and therefore non taxable. Would you be able to help me find where it explains that business expenses previously deducted would make this to be taxable?
I really appreciate your help, but you sound so knowledgeable about this topic.
