Are dischargeable debt taxable income?

[memphisbk66]

I just came back from my accountants to go over my 2008 income taxes. They just stated to me that even though my debts (both secured and unsecured) are dischargeable, in the eyes of the IRS, the mortgage debt that was discharged is considered income to me and I will have to pay taxes on them when I file my 2009 income taxes. I mentioned that my attorney stated that it is not considered taxable income so why are there a difference of opinion here? Has anyone else heard of the this?

Thanks!

[deadbroke99]

If it's discharged in bankruptcy then it should not be taxable because your insolvent. Anyone else want to chime in?

[TEW]

No it is not taxable. you may get 1099 's but you report them as discharged in BK

[StartingOver08]

My comment, use a different accountant - if they don't know the BK discharges your debt and the debt is not taxable. JMO.