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The partnership’s chapter 11 bankruptcy was a case under
title 11 of the United States Code. See 11 U.S.C. ch. 11 (2000).
Pursuant to its December 19, 1995, order, the bankruptcy court
discharged and released petitioner from all liability to the
trustee, the bank, and all other creditors that might have claims
arising from or relating to the partnership, petitioner’s status
as a general partner in the partnership, and the April 9, 1985,
personal guaranty agreement. In the same order, the bankruptcy
court explicitly asserted its jurisdiction over petitioner for
this purpose. Giving due regard to principles of judicial
comity, we discern no reason to second-guess the bankruptcy
court’s assertion of jurisdiction over petitioner in the
partnership’s chapter 11 bankruptcy case. See 28 U.S.C. secs.
151, 157, 1334 (2000).
We conclude that petitioner’s debts in question were
discharged “in a title 11 case” within the meaning of section
108(d)(2). Accordingly, we hold that petitioner’s discharge of
indebtedness income is excludable from gross income pursuant to
section 108(a)(1)(A).
We have considered all arguments raised by the parties.
Arguments not addressed herein are moot, irrelevant, or without
merit.
To reflect the foregoing,
Decision will be entered
for petitioner.
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Last modified: May 25, 2011