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their liabilities. We understand that petitioners considered
themselves insolvent in 1996, but at all relevant times
petitioners were solvent at the time their debts were discharged
within the meaning of section 108(a).
Because petitioners were solvent, we need not address
whether the potential benefits under the FPL pension plan and the
Florida Retirement System, which petitioners had no access to in
1996, should be included in "assets". Nor do we need to decide
whether the fair market value of the home was greater than the
assessed value of the home.
On this record, we hold that petitioners must include the
$13,938 of discharged debt in their 1996 gross income, pursuant
to section 108(a)(1)(B).
To the extent we have not addressed any of the parties'
arguments, we have considered them and find them to be without
merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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