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Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?

April 26, 2017excluded forgiven income Indebtedness limit Principal qualified Residence

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Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?

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There is no dollar limit if the principal balance of the loan was less than $2 million ($1 million if married filing separately for the tax year) at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982, page 4.