Edward D. and Donna L. Johns - Page 8




                                        - 7 -                                         

          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.                               











Page:  Previous  1  2  3  4  5  6  7  8  

Last modified: May 25, 2011