Melissa L. Moloney - Page 13

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          Congress.  Congress carved out an exception in section 108(f)(1)            
          to the requirement in section 61(a)(12) that income from the                
          discharge of indebtedness must be included in gross income.                 
          Congress carefully prescribed the requirements that must be                 
          satisfied in order to have the exception in section 108(f)(1)               
          apply to income from the discharge of a student loan.  Exclusions           
          from income must be narrowly construed.  Commissioner v.                    
          Schleier, 515 U.S. 323, 328 (1995).  Petitioner’s LARP award of             
          $4,372 does not satisfy the requirements of section 108(f)(1).              
          Consequently, section 108(f)(1) does not apply to that award.               
               On the record before us, we find that petitioner must                  
          include in her gross income for her taxable year 2002                       
          petitioner’s LARP award of $4,372.                                          
               To reflect the foregoing and petitioner’s concession,                  

                                             Decision will be entered for             

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