15 July 2009 External T.I. 2008-0289731E5 - Forgiveness of Accrued Interest -- summary under Forgiveness of Debt

Court findings indicate that the determination as to whether the forgiveness of debts and similar obligations incurred in the course of carrying on a business give rise to income under s. 9 depends on the purpose and the effect of the forgiveness and the use of the debt proceeds.